It is reported that Sichuan Bohong Group announced a takeover of Canadian auto parts manufacturer Wescast Industries Inc for USD 245 million on July 13. The deal is the biggest acquisition by value between industrial organizations in Sino-Canadian history.

Bohong, a privately owned company in Mianyang, in the southwestern province of Sichuan, bought all of Wescast and its liabilities. Thirty percent of the funds will come from Bohong and the rest from bank loans.

When the deal is completed, Wescast will be delisted from the Toronto Stock Exchange and go public in Hong Kong.

Mr Dong Ping president of Bohong said "Acquisition is the best choice to complete the industrial chain in a swift fashion."

He said that Bohong hopes to become a leader in auto parts casting and forging, research and development, management and environmental protection. The merger gives it advanced technologies and influential clients.

Bohong said it would invest CNY 2.35 billion to establish a base in Sichuan for turbine housings and exhaust manifolds. The facility would be the largest of its kind in the Asia-Pacific region.

Source - English.caixin

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