China's Ministry of Commerce (MOC) issued a statement late Monday saying it would approve US automaker General Motors Co.'s (GM) plan to buy part of parts supplier Delphi Corp, but set conditions on the deal to avoid restricting competition.
The approval came after an anti-monopoly probe by the MOC into the deal last week and negotiations with the two companies over the deal conditions, aimed to avoid exclusion or restriction of competition, according to the statement.
The conditions include a ban on GM and Delphi exchanging trade secrets on Delphi's other Chinese customers, to prevent GM from getting confidential and competitive information.
Delphi should also maintain the timeliness and quality of supplies indiscriminately to the other domestic automakers, at market prices.
The ministry said it had discussed with the two companies its concerns on competition, and GM and Delphi had come up with solutions.
According to a Dow Jones report Monday night, authorities in the US and E.U. had earlier given their approval for the deal, after Delphi, GM's former parts division, received approval from a US court to sell assets to its lender and GM.
The report said this would clear the way for the auto-parts supplier, which operates 17 wholly-owned entities and joint ventures in China and 21 manufacturing sites, to end its four-year stay in bankruptcy.
Under China's anti-monopoly law, mergers and acquisitions that could impact the domestic market must undergo an anti-monolopy review.
(Xinhua News Agency September 29, 2009)