State Administration for Market Regulation Photo: VCG

The State Administration for Market Regulation (SAMR), which is the principal market regulatory agency in China, has conditionally approved the acquisition of equity in Dowlais Group by American Axle & Manufacturing, according to an announcement released on the SAMR's official website on Friday.

The case involves the merger and acquisition between major global suppliers of automotive drivetrain products. Drivetrain products are a critical component in the power transmission chain of automobiles, playing an essential role in ensuring the safe and stable operation of vehicles, according to the SAMR.

During the review process, the SAMR fully considered the potential impact of the transaction on competition in the Chinese domestic market for automotive power transmission units and rear-wheel drive modules. By imposing restrictive conditions, American Axle and Dowlais have committed to four undertakings: providing fair, reasonable, and non-discriminatory supply and development opportunities; continuing to perform existing contracts; maintaining stable prices; and not unreasonably refusing renewal requests. 

These commitments are conducive to ensuring reasonable pricing and stable supply of relevant high-performance automotive components, safeguarding the interests of downstream customers and consumers, and creating a fair competition environment for the healthy and orderly development of China's automotive industry, the SAMR noted.


Global Times