SAIC and Nanjing Auto Sign Merger Contract...Deal Affects New
SHANGHAI- December 27, 2007:
China's biggest automobile industry group
Shanghai Automotive Industry Corp (SAIC) has signed a merger contract with
Nanjing Automobile (Group) Corp at Diaoyutai State Guest House in
Under this contract, SAIC will acquire all assets owned by Nanjing Auto,
including OEM and component parts manufacturing facilities. In return,
Nanjing Auto will acquire no more than 8 percent of SAIC's stakes after the
merger, an insider familiar with the talks said.
The new MG
By the end of 2008, Nanjing Auto's assets, about RMB 2 billion (USD 272
million) will be injected into SAIC Group.
The two parties will jointly develop MG and Roewe brands based on Rover
technology following the merger. The two companies currently are sharing
the same technology, derived from the now-defunct British carmaker MG
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