GM sells Nexteer
General Motors (GM) said on Monday it had completed the sale of its Nexteer equipment unit to Chinese-based Pacific Century Motors, an entity that includes the Beijing municipal government. The Michigan-based Nexteer, once called Saginaw Steering Gear, was part of GM for nearly 90 years before being spun off with parts giant Delphi Corp under the US auto giant’s restructuring. Neither GM nor Nexteer’s new Chinese owner disclosed the terms of the deal. The deal, which became effective yesterday, was signed in July.
ABB to buy Baldor
ABB Ltd, the Swiss maker of factory robots and electrical equipment, agreed to buy Baldor Electric Co in a deal valued at US$4.2 billion including debt to expand on the North American market for industrial drives and motors. Zurich-based ABB is bidding US$63.5 for each share of Fort Smith, Arkansas-based Baldor, according to an e-mailed statement yesterday. Baldor shares closed at US$45.11 yesterday. The transaction includes US$1.1 billion in debt, and ABB aims to close the purchase in the first quarter of next year, it said.
Samsung claims settled
Applied Materials Inc has settled industrial theft claims from Samsung Electronics Co, agreeing to give the South Korean electronics company discounts on purchases of semiconductor manufacturing equipment for three years. Applied says the settlement announced yesterday resolves claims and potential litigation over the “alleged acquisition, misappropriation and misuse” of Samsung computer chip technology. It follows the indictment by South Korean prosecutors in February of 18 people suspected of leaking Samsung’s technology to its domestic rival Hynix Semiconductor via the South Korea arm of Applied Materials.
Seagate ends buyout talks
Seagate Technology PLC said on Monday it terminated discussions with private equity firms about taking the disk drive maker private in a leveraged buyout because it felt the purchase price being offered was too low. The Scotts Valley, California-based company said it instead has authorized the repurchase of US$2 billion in shares in an effort to return value to shareholders. Stock buybacks lower a company’s shares outstanding, raising earnings per share and expanding the percentage size of shareholders’ stakes.
Porsche launches new SUV
Germany’s Porsche said on Monday that it plans to launch an “entry-level” new model line, a sports utility vehicle (SUV) christened the Cajun. The new car will help attract “new and even younger” customers to the brand, alongside with the two-seater Boxster, which retails in Germany for just under 47,000 euros (US$62,000), according to Porsche’s Web site. The Cajun will be the sixth model line alongside the Boxster, the Cayman, the 911, the Panamera and the Cayenne SUV, and will be “efficient and sporty,” the company said.
ThyssenKrupp plans plant
ThyssenKrupp AG, Germany’s largest steelmaker, plans to build a 170 million euro facility to make crankshafts for the automotive industry near Shanghai, China, chief executive officer Ekkehard Schulz said. The company expects to sign contracts for the plant with Chinese authorities this month, he said in Essen, Germany.