A Chinese company has won a politically charged auction for nearly all of A123 Systems Inc., the Waltham batter maker that filed for bankruptcy protection after receiving hundreds of millions of dollars of government support, said an adviser who was at the auction.
Wanxiang Group, an auto parts conglomerate, outbid Johnson Controls Inc., of Milwaukee, and Japan’s NEC Corp., which had teamed up to bid for A123’s assets, according to the adviser, who was not authorized to speak publicly because the deal has not been finalized.
Among the assets Wanxiang will buy are two plants in Michigan that were largely financed by US taxpayers. Wanxiang will not get A123’s assets related to defense contracts. Those will go to another bidder, Navitas Systems LLC, an Illinois battery company, according to the adviser.
Together, the two deals are valued at upward of $250 million, the adviser said. A sales hearing before a bankruptcy judge in Delaware is scheduled for Tuesday.
Representatives for Wanxiang and A123 could not immediately be reached. In a letter sent to A123 chief executive David Vieau on Nov. 15, Pin Ni, head of Wanxiang’s North American operations, said the Chinese company wanted to help A123 grow in the United States.
“We are committed to the future success of A123,” Ni wrote. “With the financial backing of Wanxiang America, the extensive US business operations of A123 will continue unabated.”
Wanxiang, China’s largest auto parts manufacturer, has courted A123 for months. In August, Wanxiang agreed to invest up to $465 million in A123 in exchange for a controlling stake in the struggling battery maker’s operations.
AI
