General Motors is reported to be in final stage talks to sell equity to long-time Chinese partner SAIC Motor Corporation, an event that will coincide with The General’s $13 billion initial public offering due to begin November 17.
According to two people acquainted with the matter, the two companies are currently in the process of finalizing the percentage SAIC would buy. The final round of discussions is being led by SAIC Vice Chairman Chen Hong and could wrap up as soon as the weekend.
One of the more paramount matters involves the amount of technology sharing between the two companies should SAIC go through with the equity purchase. Such an agreement is of vital importance to SAIC, which has shown all the visible symptoms of moving beyond the Chinese market.
Any agreement between the two government-owned companies would need to be approved by the Chinese government and therefore could still fall apart.
SAIC had originally reached out to GM to explore the prospect of buying a single digit stake in The General. The current size of the prospective investment is unknown.
Representatives for GM and SAIC decline to comment while sources were not authorized to speak with the media, therefore declining to comment.
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Source: Reuters
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