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State-owned AVIC buys US-based Nexteer

China’s State-owned parts manufacturer, AVIC Automobile Industry Holding Co. Ltd. recently became the majority stockholder in Nexteer Automotive, the Michigan-based maker of steering and drive-line systems. The merger is said to be the largest acquisition that the China’s auto parts industry has made. 
Last November, Pacific Century Motors (PCM) bought Nexteer from General Motors. PCM is a joint venture; the Beijing E-Town International Investment & Development Co Ltd, the financial and investment arm of the Beijing municipal government, owned the majority of PCM. In March, AVIC Automobile then acquired a 51 percent stake in PCM, becoming the controlling stockholder in Nexteer. Beijing E-Town and its partners own the remaining 49 percent.
Based in Saginaw, Michigan, Nexteer is the world’s third-largest company in sales of drive-shaft components and the fourth-largest for steering systems. It had more than $2 billion in revenue last year.

Xinhua, April 8, 2011