China’s market regulator said on Friday it approved Detroit-based American Axle & Manufacturing’s purchase of GKN Automotive owner Dowlais Group, stating that it had “fully considered” the possible impact of the transaction on competition in China.
The statement from China’s State Administration of Market Regulation (SAMR) comes around a year after American Axle said it would buy Dowlais, valuing the London-listed firm at about 1.16 billion pounds ($1.55 billion).
The combined group aims to benefit from greater scale as the auto industry grapples with volatile demand for electric vehicles, economic uncertainties and the global expansion of Chinese EV makers.
SAMR said that with additional restrictive conditions, American Axle and Dowlais have made four commitments, including “fair, reasonable and non-discriminatory supply and development opportunities, continued performance, price stability and not refusing reasonable renewal requirements”.
This would “protect the interests of downstream customers and consumers and create a level playing field for the health and orderly development of our country’s automobile industry,” SAMR said.
Reuters
