Saab sold to Pang Da and Youngman for 100 million Euro

And the deal is done – Swedish Automobile announced today that Saab will be sold to two Chinese companies for 901 million Yuan, which is about RM435 million or 100 million Euro. The two Chinese companies are Zhejiang Youngman Lotus Automobile and Pang Da Automobile.

The deal comes after long negotiations, which included a previous offer from Youngman and Pang Da to buy 53.9% percent of Saab for 2.2 billion Yuan. It looks like the Chinese companies got a better deal now than the previous one. Earlier in the week Swedish Automobile had said it was terminating the investment deal with both companies, so it looks like all that talk has ended up with a very different walk.

The Memorandum of Understanding for the purchase will be valid until November 15 this year, and in the meantime the sale has to get approval from Chinese regulators, the Swedish government, the European Investment Bank and General Motors, Saab’s former owner.

This is not the first Swedish automaker to end up in Chinese ownership – Volvo is now owned by Chinese company Geely.

© 2011 Paul Tan's Automotive News. All Rights Reserved.

This story originally appeared on Paul Tan's Automotive News on Sun, 30 Oct 11 23:31:17 +0000.

Related posts:

1. Saab ends investment deal with Youngman, Pang Da
2. Saab-Youngman JV to build three new models in Sweden
3. Saab’s adventure continues – Youngman joins the party
4. Saab gets another 15m euro cash injection from Pang Da

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