[ROVERNET - UK] China's 40% of MG-Rover

[Stephen Beer]

...and DaimlerChrysler was a "merger of equals".
Stephen




On Sep 10, 2004, at 3:33 AM, John Windwood wrote:

> It is worth noting that MG Rover bosses have categorically denied that 
> the
> company will be taken over-they stress that it is a collaboration deal 
> only.
> Kind Regards
> John
> John Windwood
> rover-2000
> ----- Original Message -----
> From: "Eric Russell" <p6rovers at yahoo.com>
> To: <rovernet at lyris.ccdata.com>
> Sent: Friday, September 10, 2004 3:50 AM
> Subject: Re: [ROVERNET - UK] China's 40% of MG-Rover
>
>
>>
>> --- "sspmilr at netzero.net" <sspmilr at netzero.net> wrote:
>>
>>>
>>> Hi Roverists:
>>>
>>> Does anyone know what the Chinese intend doing with
>>> their
>>> share of MG-Rover?
>>>
>>> Peter Miller
>>> Port Orchard, Wa.
>>> USA
>>>
>> OK. Since you asked......
>>
>> Update: Shanghai Auto plans to buy UK's MG Rover -
>> paper Reuters English News Service 08/23/04 (C)
>> Reuters Limited 2003.
>>
>> FRANKFURT, Aug 23 (Reuters) - Shanghai Automotive
>> Industry Corp (SAIC), China's largest carmaker, plans
>> to buy privately held British automaker MG Rover in a
>> bold push to grab a Western beachhead, the Automotive
>> News Europe weekly reported on Monday.
>>
>>
>> Quoting sources in England and China, the paper said
>> SAIC would boost its ambitions to become the world's
>> sixth-largest automaker by taking an initial equity
>> stake in MG Rover, the size of which was still under
>> discussion.
>>
>> It said SAIC intended to take control of MG Rover in
>> the long term, which would be a rare example of an
>> emerging-market producer taking control of a Western
>> brand.
>>
>> SAIC will buy MG Rover, it quoted a source in China,
>> who it said was involved in the discussions, as
>> saying. When the announcement is made depends on the
>> progress of the negotiations, hopefully in a few
>> months.
>>
>> There is an absolute and definite plan which seems to
>> start with some kind of joint deal, it quoted an MG
>> Rover source as saying.
>>
>> I think over the course of months it becomes more and
>> more Shanghai and less and less Longbridge ... Two or
>> three years from now I would imagine SAIC to have the
>> vast majority of the company. The relationship is
>> good.
>>
>> No comment was immediately available from either
>> company.
>>
>> The plan envisions producing hatchback versions of the
>> Rover 45 in Longbridge, England, and sedans in China,
>> where there is almost no market for hatchbacks, the
>> paper reported.
>>
>> SAIC also sees MG Rover's 1,247 western European
>> dealers as a point of entry into Europe.
>>
>> MG Rover, an independent car maker, has been
>> struggling to break even after being sold four years
>> ago by Germany's BMW AG (XETRA:BMWG.DE - News) for
>> just 10 pounds ($18).
>>
>> Britain's seventh-largest private equity group,
>> Phoenix Venture Holdings Ltd, owns MG Rover now.
>>
>> SAIC signed a cooperation agreement with Rover in June
>> but provided no details, saying the companies had yet
>> to receive central government approval.
>>
>> State media in China quoted sources close to Shanghai
>> Auto as saying the company would buy a stake in Rover
>> and start producing Rover products in China.
>>
>> Shanghai Auto is already the main Chinese partner of
>> both General Motors (NYSE:GM - News) and Volkswagen AG
>> (XETRA:VOWG.DE - News).
>>
>> The company aims to become one of the world's top six
>> automakers by 2010 and has said it wants to list its
>> stock overseas to raise a reported $2 billion.
>>
>> In July it agreed to buy South Korea's Ssangyong Motor
>> Co (KSE:003620.KS - News), and executives have said
>> Shanghai Auto would keep seeking overseas acquisitions
>> and develop its own brand. (Additional reporting by
>> Ben Blanchard in Shanghai)
>>
>>
>>
>> =====
>> Webmaster & Magazine Editor:
>> The Rover Car Club of Canada -  www.roverclub.ca
>>
>>
>>
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