Battery maker A123 was sold to China’s Wanxiang Group, but the company won’t come with more government money. The DOE won’t give A123 Systems Inc. the balance of a $249 million grant, a department official tells Reuters. Wanxiang, in the meantime, let it become known that it did not ask for the grant money, and that it did not anticipate receiving it.
The deal needs court and U.S. government approval. Court approval is more or less certain after Wanxiang outbid Johnson Controls. Approval by the Committee on Foreign Investment in the United States (CFIUS) is another matter. The U.S. government is under a lot of criticism for throwing good money after bad companies.
If the deal won’t get government approval, A123 would be put back on the auction block, whereupon Johnson Controls would be very interested in bidding again, Alex Molinari, president of Johnson Controls Power Solutions, told Reuters.