Could there be a merger?

[Perkins]

Shanghai Auto buys Nanjing car maker By Lydia Chen

Source : Shanghai daily 2007-12-26

SHANGHAI Automotive Industry Corp (Group) today signed a deal to buy Nanjing Automobile Group Corp's auto-assembly and component-making businesses and become China's biggest auto maker.

SAIC Motor Corp, the listed unit of Shanghai Auto, gave 320 million shares of SAIC Motor to buy the assets, 4.88 percent of the whole shares of SAIC, the two companies said in a signing ceremony in the Great Hall of the People in Beijing.

The shares are now worth 2.1 billion yuan (US$286 million).

The duo also agreed to set up a joint venture to oversee other businesses of Nanjing Auto, including services, trade and assets, the two companies said in a statement.

Nanjing Auto will own 25 percent of the joint venture Dong Hua Co, according to the statement.

"Both sides will complement each other as well as share their resources in terms of funding, research and development, marketing, manufacturing and procurement,'' the statement said.

The deal will boost the combined sales of Shanghai Auto and Nanjing to more than two million vehicles by 2010 and make the companies more competitive, Bloomberg News Service cited Fitch Ratings Ltd as saying.

Shanghai Auto has 17.44 percent of the Chinese auto market. Nanjing Auto, the country's oldest car maker, also makes Soyat compacts and has a venture with Fiat SpA.

SAIC Motor Corp, which has all the auto-related assets of parent Shanghai Auto, boosted profit fourfold in the third quarter after it bought stakes in ventures that assemble vehicles with Volkswagen and General Motors Corp.

China's government has asked auto makers to combine into larger companies that can compete with overseas rivals such as Toyota Motor Corp and Volkswagen AG. China, the world's third-largest vehicle producer, has 47 car makers including foreign companies operating plants in the country, compared with 15 in the United States.

[JohnDotCom]

Oh Dear, I hope this isn't the Beginning of the End.
It could also be the Money to get MG Properly off the Ground.

[Perkins]

They realy signed an agreement at Beijing....

[Greeners]

http://www.telegraph.co.uk/money/mai...cnrover128.xml


Sounds like positive news........does this mean the forums have to merge ???

[JP53]

It would be fantastic to see Rover's and MG's rolling off a British production line again.