NEC to Buy A123’s Grid Energy Storage Business From Wanxiang

NEC Corp. (6701), a Japanese maker of computers and telecommunications equipment, will acquire the grid energy storage business of A123 Systems LLC from China’s Wanxiang Group Corp. for about $100 million.

A new company, NEC Energy Solutions, will begin operations in June, Tokyo-based NEC said in a statement today. A123 will continue to operate its other units, which deal in battery manufacturing and sales, research and development and automotive operations. Wanxiang Group bought the company in January 2013.

NEC also plans to set up a joint venture with Wanxiang to develop an energy storage business in China, according to the statement.

To contact the reporter on this story: Chisaki Watanabe in Tokyo at cwatanabe5@bloomberg.net

To contact the editors responsible for this story: Reed Landberg at landberg@bloomberg.net Jason Rogers, Indranil Ghosh

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