Pacific Century Motors Says It Plans More U.S. Takeovers After Next Year
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Pacific Century Motors, which is acquiring parts supplier Nexteer Automotive from General Motors Co., said it’s considering more acquisitions in the U.S. that aren’t likely to take place until after next year.
Pacific Century is focused on making Nexteer the top global supplier of steering parts, Chairman Zhao Guangyi said today in an interview in Saginaw, Michigan. More U.S. takeovers are a second priority, he said.
“We haven’t finalized any, but we believe we will have more in the near future,” he said through a translator.
Nexteer is now the fourth-largest steering-parts supplier by market share, Chief Executive Officer Bob Remenar said. Revenue this year will be about $2 billion, he said.
Pacific Century, formed by Tempo Group and an affiliate of the Beijing government, said today that the Nexteer acquisition will be effective tomorrow. Terms weren’t disclosed.
The price may have been about $450 million, a person familiar with the matter said in July. The takeover is the largest acquisition of an auto-parts supplier by a Chinese entity, the companies said today.
GM, which acquired Nexteer from Delphi Automotive LLP last year, later deemed it a non-core asset and said in January it would sell the steering unit. Nexteer, which had $2.1 billion in revenue in 2008, has more than 60 customers worldwide, including GM and Ford Motor Co.
Nexteer’s business includes operations in 22 factories, six engineering facilities and 14 customer support centers, Pacific Century said today.
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