Nanjing Automobile Acquires MG Rover Assets

Nanjing Automobile Corporation (Nanjing) has beaten competitor, Shangai Automotive (SAIC), and acquired the assets of the MG Rover from the administrator, PricewaterhouseCoopers. The news owner reports that it intends to revitalise the MG brand and create a range of vehicles from manufacturing centres in China and the UK.

“Until late last week SAIC had offered to acquire only the Powertrain assets. On Monday of this week SAIC submitted a conditional bid for all of the MG Rover and Powertrain assets. However the level and conditionality of SAIC’s bid left Nanjing’s bid as the preferred way forward.

Nanjing’s bid came at a time when commentators were assuming the plant and its assets would be sold and relocated to China. “Until late last week SAIC had offered to acquire only the Powertrain assets. [Then] SAIC submitted a conditional bid for all of the MG Rover and Powertrain assets. However the level and conditionality of SAIC’s bid left Nanjing’s bid as the preferred way forward,” explained assistant administrator, Tony Lomas.

“Nanjing…has indicated its intention to relocate the engine plant and some of the car production plant to China, to retain some car production plant in the UK and to develop an R&D and technical facility here in pursuit of the same global expansion ambition that it had when it joined with SAIC as the intended joint venture partners to Phoenix Venture Holdings before the collapse of MG Rover,” the administrator added.

The sale concludes a three-month process following the collapse of MG Rover in early April. Nanjing Automobile (Group) Corporation was one of the two Chinese groups that had planned to become joint venture partners with Phoenix Ventures, prior to the collapse of negotiations. Nanjing says it aims to become a significant global player in the automotive industry.