China Greenlights American Axle's Acquisition of GKN Automotive Owner

China's market regulator, SAMR, has approved American Axle & Manufacturing's acquisition of Dowlais Group, the owner of GKN Automotive. This decision follows a year-long process and involves commitments to ensure fair competition in China's auto industry.

In a significant development, China's market regulator, the State Administration of Market Regulation (SAMR), announced its approval of American Axle & Manufacturing's acquisition of Dowlais Group, the owner of GKN Automotive. The decision marks the culmination of a year-long process.

American Axle's move to acquire the London-listed firm Dowlais Group, valued at approximately 1.16 billion pounds ($1.55 billion), aims to enhance its scale amid fluctuating demand for electric vehicles and global economic uncertainties. This strategic acquisition is set to solidify the company's position as the auto industry navigates volatile market conditions.

SAMR's approval comes with restrictive conditions and commitments from American Axle and Dowlais, ensuring fair supply and development opportunities, performance continuity, price stability, and reasonable contract renewals to protect consumer and customer interests in China's automobile sector. The regulator emphasizes that these measures will promote a healthy and orderly development of the country's auto industry.