GUANGZHOU, CHINA — An automotive supplier majority owned by China's SAIC Motor Corp. is in talks with Johnson Controls Inc. about acquiring the U.S. supplier's electronics business, a daily Chinese business newspaper reports.
The SAIC unit, Huayu Automotive Systems Co., is expected to offer more than $1 billion (about 770 million euros) for the business, according to the 21st Century Business Herald, citing an unnamed investment bank source familiar with the deal.
The acquisition would strengthen Huayu's electronics business, which is headquartered in the south China city of Guangzhou, the newspaper reported,
Huayu is 60 percent owned by SAIC and is listed on the Shanghai stock exchange. It supplies automotive interior and exterior trims, metal formed and die cast parts as well as electric and electronics parts to global and domestic automakers in China.
In 2012, Huayu had sales of 57.9 billion yuan (7.2 billion euros), up 11 percent from 2011, and a profit of 3.1 billion yuan, up 4 percent year-on-year, the newspaper reported.
Glendale, Wis.-based JCI had announced on March 6 that it was considering selling its automotive electronics business. The business includes the company's HomeLink system-integrating garage door openers, alarm systems and other home controls into a vehicle control, as well as in-car electronics and safety systems.
JCI has said it is not interested in selling its automotive interiors business.