China OKs GM-Delphi Deal

SHANGHAI (AP) -- China's Commerce Ministry has given a conditional green light for General Motors Co.'s plan to acquire portions of auto parts maker Delphi Corp.

Among other things, the ministry banned GM and Delphi from exchanging trade secrets about Delphi's other customers. Delphi is required to ensure it supplies parts to other automakers in a timely, reasonably priced and fair way, the ministry said in a statement issued Monday.

The ministry set the rules, aimed at preventing the companies from restricting competition, following an anti-monopoly investigation into the deal.

Delphi is GM's former parts division that still makes 10 percent of the parts that go into GM models. It was spun off in 1999 and sought protection from creditors in 2005.

GM is purchasing Delphi's global steering business and four of the parts supplier's plants it used to own in New York and Indiana.

The European Commission earlier approved the deal.

On July 30, a New York court approved Delphi Corp.'s plan to hand control of the big auto parts supplier to its lenders to end its four-year stay under Chapter 11 protection.

Delphi operates 17 wholly owned entities and joint ventures in China.

China's anti-monopoly law requires that mergers and acquisitions that could affect the domestic market undergo an anti-monolopy review.

The ministry said it allowed the deal to go through after GM and Delphi worked out ways to answer its concerns over potential problems.

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