Chinese firms buy Saab

* Saab sold to Chinese car makers * Deal worth 88 million * Deal still needs Government approval...

Chinese firms buy Saab
Author Avatar
John McIlroy
28 Oct 2011 08:46

Saab is set to pass entirely into Chinese ownership, after parent firm Swedish Automobile agreed to sell the troubled manufacturer to Pang Da and Youngman.

The deal, which includes Saab GB, was announced this morning. Chinese car maker Pang Da and Youngman will pay 100 million (88m) to complete the deal a huge drop from a recent valuation of Saab's value.

As recently as June, Pang Da and Youngman signed an agreement with Swedish Automobile that valued the company at around 480 million (423m).

That deal failed after Chinese Government approval was not forthcoming. The same caveat will apply to the new deal; Swedish Automobile says the memorandum of understanding with Pang Da and Youngman will last until November 15, providing Saab stays in its current state of voluntary reorganisation.

Swedish Automobile claims the agreement includes 'a commitment to provide long-term funding to Saab Automobile', but the new owners have not issued any model plans.