GM to increase SGMW stake by 10%
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General Motors (GM) is to spend US$51 million on an additional 10 percent of SAIC-GM-Wuling Automobile (SGMW), according to a US regulatory report filed last Wednesday. It has also agreed to provide technical services through 2013.
If the transaction is approved by Chinese regulators, it will take the Detroit auto maker's stake in SGMW to 44 percent. Current holdings of SAIC Group, GM and Wuling Group are 50.1 percent, 34 percent and 15.9 percent respectively.
An insider from SGMW told National Business Daily on Monday, that the exact timing of the transaction had still to be decided.
GM made a profit of US$2 billion in Q3 of which US$1.1 billion was from Shanghai GM and SGMW.
China's business press carried the story above on Tuesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
