China Commerce Ministry Sets Conditions On GM, Delphi Deal
28 September 2009 - 2:23PM
Dow Jones News
China's commerce ministry said late Monday it imposed conditions
on U.S. automaker General Motors Co.'s plan to buy part of Delphi
Corp. (DPHIQ), because of concerns the deal may have a negative
impact on competition in the domestic auto market.
The ministry said it was also concerned the deal will harm
competition in the local auto parts market.
The ministry said that under the conditions it imposed on the
deal, GM won't be allowed to set procurement conditions that
benefit Delphi only.
Delphi, GM's former parts division, has relied heavily on its
former parent company as it has navigated bankruptcy
proceedings.
Delphi won approvals from U.S courts and the European Commission
in August to sell assets to its lenders and General Motors.
-JR Wu and Juan Chen contributed to this story; Dow Jones
Newswires; 8610 6588 5848; juan.chen@dowjones.com