SAIC unit aims to buy JCI's electronics business
An automotive supplier majority owned by SAIC Motor Corp. is in talks with Johnson Controls Inc. about acquiring the U.S. supplier's electronics business, a daily Chinese business newspaper reports.
The SAIC unit, Huayu Automotive Systems Co., is expected to offer more than $1 billion (6.3 billion yuan) for the business, according to 21st Century Business Herald, citing an unnamed investment bank source familiar with the deal.
The acquisition would strengthen Huayu's electronics business, the newspaper reported, headquartered in the south China city of Guangzhou.
Huayu is 60 percent owned by SAIC and is listed on the Shanghai stock exchange. It supplies automotive interior and exterior trims, metal formed and die cast parts as well as electric and electronics parts to global and domestic automakers in China.
In 2012, Huayu had sales of 57.9 billion yuan, up 11 percent from 2011, and a profit of 3.1 billion yuan, up 4 percent year-on-year, the newspaper reported.
The acquisition would strengthen Huayu's electronics business, the newspaper reported, headquartered in the south China city of Guangzhou.
Huayu is 60 percent owned by SAIC and is listed on the Shanghai stock exchange. It supplies automotive interior and exterior trims, metal formed and die cast parts as well as electric and electronics parts to global and domestic automakers in China.
In 2012, Huayu had sales of 57.9 billion yuan, up 11 percent from 2011, and a profit of 3.1 billion yuan, up 4 percent year-on-year, the newspaper reported.
