The largest auto parts acquisition in China's history will soon come to an end. Beijing Pacific Century Automotive Systems Co., Ltd. (hereinafter referred to as "Pacific Century") will acquire GM's steering business for us $440 million, and the delivery will be completed as soon as next week. The delivery price was $10 million lower than the original $450 million agreement price. Robert B. Weiss, a lawyer with Honeywell law firm, revealed the news in an interview with China business daily, saying: "this is the largest part trading project between China and the United States." Pacific Century and General Motors signed an agreement on July 7 this year, and agreed to complete the delivery in the fourth quarter. Nexteer's acquisition broke the overseas acquisition record of Jingxi heavy industry in the field of spare parts last year. In 2009, the company acquired the global production price of suspension system and brake system of Delphi. Since April, nexteer has received offers from companies at home and abroad, including buyers from South Korea and private equity funds from the U.S., who have lost. The Chinese bid is attractive and all cash, Weiss said. Under the influence of the financial crisis, nexteer's turnover dropped from US $2.1 billion in 2008 to US $1.6 billion in 2009. It is expected that the business of nexteer will recover to US $1.8 billion this year and reach US $2.5 billion in 2013, returning to the level before the financial crisis. Pacific Century, the main body of the acquisition, is composed of Beijing Yizhuang international investment and Development Co., Ltd. (hereinafter referred to as "Yizhuang international") and Tianbao automobile. Yizhuang international was established in February 2009 with a registered capital of 3 billion yuan and is wholly owned by the state owned Assets Management Office of Beijing Economic and Technological Development Zone. Tianbao Automobile Co., Ltd., which originated in Anhui Province, is a leading company in the field of spare parts in China. It once owned two listed companies, Beitai venture (02339. HK) and St Songliao [11.051.28%] (600715. SH). However, the above two companies suffered heavy losses in the financial crisis. Beitai venture capital was wound up by the Hong Kong Stock Exchange on January 23 last year, and St Songliao also suffered losses for many years. In May this year, Tianbao automobile transferred its 24.89% equity of St Songliao to Yizhuang international, totaling 490 million yuan. In fact, nexteer is a continuation of Delphi's global suspension and brake business, according to Weiss. Although the acquisition subject of Delphi business is Jingxi heavy industry, the latter is a tripartite consortium composed of Tianbao automobile, Shougang Group and Beijing Fangshan state owned Assets Management Co., Ltd., with share ratios of 24%, 51% and 25% respectively. Weiss said that in the above-mentioned transaction, Tianbao Group and GM reached a consensus, but at that time, GM needed to let Delphi complete bankruptcy reorganization as soon as possible, so it bought nexteer first. The completion of Delphi business laid the foundation for nexteer business to be sold to China. "Without the support of Yizhuang and Tianbao's knowledge, operation skills and experience in the North American automobile market, the transaction will be difficult to succeed." Chen Zhonghua, founder and chief executive officer of Heishi capital, said Heishi capital provided strategic advice to the Chinese side in the transaction. When Delphi business was acquired, Tianbao Auto's role had been fully played. It is reported that at the time of the project delivery, most of the dozens of acquisition team sent by Jingxi heavy industry came from Tianbao automobile. In the acquisition of nexteer business, the mode of state-owned investment and private capital contribution has been copied. In addition, both Fangshan SASAC and Yizhuang international have demonstrated Beijing's unremitting efforts in building an automobile industry chain in recent years. In the field of parts industry, overseas acquisition once again becomes a shortcut for speeding development.