The largest Chinese investment in a U.S.-based automotive supplier was completed earlier this week with the acquisition of steering and driveline systems supplier, Nexteer Automotive (Saginaw, MI) by PCM, an entity formed by PCAS and Beijing E-Town International Investment & Development Co., Ltd. (E-Town), which is itself an affiliate of the Beijing municipal government. Under the agreement finalized Nov. 30, Nexteer, which was part of General Motors, will maintain global headquarters in Michigan, with the current management team, including CEO Robert J. Remena, remaining in place. The agreement is the culmination of 10 months of analysis and negotiations, between all involved parties, including the United Auto Workers (UAW).
This is not likely to be the last acquisition by E-Town, the state-owned enterprise under Beijing Economic-Technological Development Area (BDA). That entity serves as the financing and investment arm of the Beijing Municipal Government, and currently has more than $15 billion in hand to fund acquisitions....