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Chinese company to buy 80% of US battery maker

Updated: 2012-08-10 10:47
( China Daily)

China's Wanxiang Group, a leading auto-parts supplier, will take an 80 percent stake in the US battery maker A123 Systems, Reuters reported on Thursday.

A123, which makes high-tech auto batteries for hybrid and electric vehicles, said Wanxiang Group plans to invest up to $450 million in the company.

A123 on Wednesday reported a second-quarter loss of $82.9 million, or 56 cents per share, compared with a loss of $55.4 million, or 44 cents per share, a year earlier.

It also warned last month that it had cash to pay for its operations for only the next four to five months.

The company said the deal should be complete before the end of the year, and a quick cash injection should help it get through the next several months, Reuters said.

China Daily-Agencies