General Motors Co. (GM:US), the largest U.S. automaker, said it paid $119 million to Shanghai Automotive Industry Corp. for a 1 percent stake in a joint venture with the company, taking its overall share of the business to 50 percent.
GM Chief Financial Officer Dan Ammann said yesterday, during a conference call with reporters about the automaker’s fourth-quarter earnings, that the Chinese government had approved the deal. The purchase price and the completion of the deal in September were disclosed today in an annual regulatory filing.
The joint venture was originally established with 50-50 ownership. GM sold a 1 percent stake to Shanghai Automotive in February 2010, according to the filing, following the company’s bankruptcy reorganization in 2009. GM ceded control of the venture with the sale.
China is the world’s largest automotive market and the biggest for Detroit-based GM. Chief Executive Officer Dan Akerson is seeking to increase sales in China by 75 percent by 2015.
GM was little changed at $27.76 at the close in New York.
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