Shanghai Automotive close to Rover takeover

Shanghai Automotive close to Rover takeover

Shanghai Automotive reportedly completed its full feasibility study regarding the company's proposed $1.9 billion acquisition of 70% of MG Rover Group's shares. Shangai Automotive and MG Rover signed a cooperation agreement last June. Shanghai Automotive is now preparing to present its report to the Shanghai city government for approval. The government is expected to allow the merger to proceed. Shanghai Automotive also has major joint ventures with General Motors Corp. and Volkswagen AG.