Chinese company wins bankruptcy auction for A123

At a bid of $250 million, Wanxiang purchased battery maker A123 out of bankruptcy.  Wanxiang outbid other companies including Johnson Controls, Inc. and NEC Corp.  A123’s government and military contracts were a major concern for many close to the auction; however, Wanxiang did not purchase those items as part of its bankruptcy bid.  Those contracts were purchased by another company in a separate bid.  Wanxiang has said that it will not lay off workers.

A123 is the second American battery company to be sold to a foreign purchaser.  For more about this sale see “Wanxiang wins auction for assets of battery maker A123.