Johnson Controls withdraws from A123 Systems bankruptcy auction

Subsequently A123 representatives have announced they selected Wanxiang's bid of $257 million as the best offer for the total company over a set of competing complementary bids by Johnson Controls for the automotive and government assets and NEC for the grid and commercial assets. The final sale is subject to approval by the bankruptcy court. A hearing is currently scheduled for Dec. 11, 2012. Sale to Wanxiang is also subject to review by the Committee for Foreign Investment in the United States (CFIUS) and requires approval by the U.S. government. Timing for such review and approvals is unknown at this time. "While A123's automotive and government assets were complementary to Johnson Controls' portfolio and aligned with our long-term goals, Wanxiang's offer was beyond the value of those assets to Johnson Controls," said Alex Molinaroli, president, Johnson Controls Power Solutions. "Reports by other parties that our proposal involved an elimination of jobs in Michigan are inaccurate."