[ROVERNET - UK] Re: Rover & Shanghai
wreynold at uniserve.com
Tue Nov 23 04:42:37 GMT 2004
Here's the text of an article a friend emailed to me on Nov 21/04.
"Takeover looms for Rover
MG Rover, Britain's last large car maker, is on the brink of a merger with a
Chinese motor company.
The deal could secure the Longbridge plant
Reports say the Shanghai Automotive Industry Corporation will get 70 per
cent control of Rover in exchange for investing more than £1 billion.
The deal hangs on the Chinese government giving the go-ahead in the New
MG Rover will not discuss details of the merger but have said it could be
signed next year and will be a "tremendous opportunity" for both sides.
Stewart McKee, head of international media, said: "The precise details of
the collaboration between Shanghai Automotive Industry Corporation and MG
Rover are yet to emerge, as both parties are awaiting final approval from
the Chinese authorities, which is expected in the New Year.
"What's certain is that we have started negotiations with Shanghai
Automotive to enter into a wide-ranging strategic relationship.
"We have signed those agreements in June of this year and both parties have
been working hard on the detail of the relationship.
"We do need the final approval of the Chinese authorities in order to
proceed and that's the point at which the final details will emerge.
"The ownership of Rover has been discussed at a number of points. We have
always talked about a joint collaboration."
But despite talks of joint control, reports say that the deal will mean
control of the Longbridge-based motor manufacturer will pass out of British
A new joint-venture company to design, develop and produce cars will be
owned by the Chinese, with only 30 per cent held by MG Rover.
There will be separate British and Chinese companies to manufacture the new
models in Birmingham and Shanghai but the key assets and intellectual
property rights of the two car-makers will be contained in the
Chinese-controlled joint venture.
Information appearing on telegraph.co.uk is the copyright of Telegraph Group
Limited and must not be reproduced in any medium without licence. For the
full copyright statement see Copyright "
Walter. 1968 P6 SC
Walter D. Reynolds
19753 Wildcrest Avenue, Pitt Meadows, B.C. V3Y 1M3
Ph: 604-465-6350 Fax: 604-465-6367
> I am from Brisbane Australia and i was told by a friend that there was a
> news article about Rover last night on the news about it going broke or
> such thing. They just caught the tail end of the article. Did anyone see
> or know what it was about, or is this just another rumour / urban myth?
> Thanks Damien
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