Chinese firms poised to finalise US acquisitions

Chinese firms are set to further expand their presence in US aerospace and defence markets with the acquisitions – announced on 9 December – of battery maker A123 Systems and aircraft leasing company International Lease Finance Corporation (ILFC).

Chinese automotive group Wanxiang is poised to acquire A123 Systems for USD256 million after outbidding rivals to purchase a majority stake in the cash-strapped US battery maker, while the American International Group (AIG) said it had entered a deal with a group of Chinese investors under which the US corporation will sell up to a 90% stake in ILFC for USD5.28 billion.

Both deals remain subject to clearance by the Committee for Foreign Investment in the United States. Should they be approved, the ILFC acquisition will become one of the biggest purchases of a US company by Chinese investors.

AIG said the Chinese investor group bidding to acquire ILFC comprises the New China Trust Company, the China Aviation Industrial Fund, and P3 Investments. It added that the transaction is expected to close in the second quarter of 2013. ILFC is termed as an independent aircraft lessor with a global customer base of approximately 200 airlines in 80 countries.