Huaxiang, settling dispute, buys stake in 2 JVs with Grupo Antolin
Chinese auto supplier Ningbo Huaxiang settled a marketing dispute with Spain's Grupo Antolin and agreed to acquire stakes in two of the Spanish automotive supplier¡¯s joint ventures.
The deals will not entail personnel changes, Huaxiang said. The partnerships are independent with their own production, supply, sales and r&d operations, with no reliance on Antolin for technology or market access.
The deals settle a dispute between Huaxiang and Antolin that started last year.
In December, Huaxiang filed a request for arbitration with the Shanghai International Economic and Trade Arbitration Commission.
Huaxiang argued that Antolin had violated non-compete clauses in their joint venture contract by investing in companies located in Wuhan, Changchun, Beijing and Changshu that made competing products.
At the time, Huaxiang proposed to buy out the Ningbo joint venture and receive 490 million yuan in damages.