(MENAFN) China's auto parts maker Wanxiang announced that it has gained the US approval to acquire A123 Systems Inc., a bankrupt electric car battery manufacturer backed by the US government, reported Xinhua News.
Wanxiang US subsidiary's chief, Pin Ni, said that the Committee on Foreign Investment in the US (CFIUS), a group of government agencies chaired by the US Treasury Department, has endorsed the sale of the lithium-iron battery manufacturer.
Last year, the US firm filed for bankruptcy and was sold at an auction managed by the US Bankruptcy Court in Delaware.
Last month, Judge Kevin Carey approved the acquisition by Wanxiang, which was carried out through an auction that took place in Chicago.
However, the sale didn't include A123's contract with the US military and government, to avoid the transfer of sensitive technology to foreign parties.
It is worth noting that Wanxiang US subsidiary is located in Elgin, Illinois.
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