SAIC subsidiary to buy Shanghai Diesel Engine

Shanghai Automotive Co., Ltd. has been approved by the China Securities Regulatory Commission (CSRC), the countrys securities regulator, for its acquisition of 241.7 million shares or a 50.32% stake in Shanghai Diesel Engine Co., Ltd. Shanghai Automotive, a listed subsidiary of Shanghai Automotive Industry Corporation (SAIC), is set to buy the shares from Shanghai Electric Group Co., Ltd., a mechanical and electrical equipment manufacturing giant in China, for 923.42 million yuan (US$134.8 million). After the deal, Shanghai Automotive will become a controlling shareholder of Shanghai Diesel Engine, part of its parent companys efforts to grow into an international auto group with powerful core competitiveness. Besides Shanghai Automotive, SAIC will have the other two listed affiliates such as Shanghai Diesel Engine and Shanghai Bashi Industrial Group Co., Ltd. (September 11, 2008)