Feb. 3 (Bloomberg) -- Zhejiang Youngman Lotus Automobile Co. is in talks to buy part or all of bankrupt Saab Automobile to help build the Chinese automaker’s brand globally.
Youngman is still in the “early stages of discussions” and hasn’t decide which assets to buy, Hu Ming, a spokesman for the closely held Jinhua, China-based company said in an interview today. Representatives from both companies met in Beijing over the Lunar New Year period to speak further on the acquisition, he said, declining to elaborate on the assets being considered, or the value of the deal.
Saab, whose parent is Netherlands-based Swedish Automobile, filed for bankruptcy on Dec. 19 after running out of cash. Mahindra & Mahindra Ltd., India’s biggest sport-utility vehicle manufacturer, is interested in buying at least parts of the Swedish automaker, two people familiar with the situation said on Dec. 30.
Youngman accumulated cash during the 2008 recession, giving the company the ability to make acquisitions now, Hu said. The Chinese automaker has long-term plans to make its passenger-car unit a “competitive global brand,” and buying Saab assets would fit into that goal, he said.
A call to Saab’s press office today wasn’t immediately answered.
--Liza Lin. Editors: Dave McCombs, Garry Smithi
#<160394.2332622.214.171.124.7.25># -0- Feb/03/2012 04:21 GMT
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