Tuesday, October 06, 2009
Europe clears GM's acquisition of Delphi
The European Commision has approved the proposed acquisition of Delphi's auto electrics business by General Motors.
The EC ruled under merger regulations the takeover would not significantly impede effective competition in the European Economic Area.
GM wants Delphi's mobile electronics and transportation systems. It got EU approval in August to buy Delphi's steering operations.
Delphi is expected to emerge from Chapter 11 bankruptcy protection within the next few days.
It filed for court protection in 2005. It will exit as a new company with just three of its predecessor's 33 US manufacturing plants. It now has 21 factories in China.
Its global workforce has shrunk from 180,000 to 100,000 employees.
After its emergence, Delphi will be controlled by a group of more than 50 banks and hedge funds whose loans kept it afloat during the bankruptcy proceedings.
General Motors, which has contributed $12.5bn to keep Delphi afloat over the past four years, will have a small equity stake.
Delphi was spun off by GM in 1999, and ìs its biggest supplier.
DATED: 06.10.09
FEED: AM
