DOVER, Del. (AP) — Chinese auto parts conglomerate Wanxiang Group Corp. says a federal panel has approved its purchase of most assets of failed battery maker A123 Systems Inc.
Wanxiang said Tuesday that the Committee for Foreign Investment in the United States (CFIUS) approved the $257 million deal.
Wanxiang beat Milwaukee-based auto parts marker Johnson Controls Inc. in bidding for A123's assets after the company sought bankruptcy protection in Delaware. After losing the bid, JCI lobbied for CFIUS to deny approval of Wanxiang's purchase.
Some members of Congress also opposed the sale to Wanxiang, even though A123's defense-related business assets are being sold separately for $2.25 million to Navitas Systems of Woodridge, Illinois.
Waltham, Massachusetts-based A123 received more than $130 million of a $249 million Department of Energy grant before declaring bankruptcy.