SAIC is poised to take stake in GM if China approves

 
City A.M. Reporter
CHINA’S SAIC Motor Corp has reached a deal in principle to take a stake in General Motors if Chinese regulators approve the deal that would deepen an existing alliance between the two automakers, a person familiar with the matter said.

China’s government would have to approve the investment before Wednesday for it to go forward as part of GM’s initial public offering of shares, the person said.

The amount of the proposed investment by China’s top automaker was not immediately clear yesterday.

Negotiations between the two sides have focused on an investment of $1bn (£620m) or less in a move that would help cement agreements for increased cooperation between the automakers outside China.

GM and SAIC representatives could not be reached immediately for comment.

The person familiar with the matter was not authorised to speak publicly as the discussions between GM and SAIC remain private.