MG Rover on brink of Chinese merger

MG Rover, Britain’s last big car maker, is on the brink of a merger with the Chinese, the company confirmed today.

One report said the Shanghai Automotive Industry Corporation will effectively take the business over, getting 70% in exchange for pumping in more than £1bn (€1.42bn).

The deal hangs on the Chinese Government giving the go-ahead in the New Year.

MG Rover would not discuss details of the merger today but said it could be signed next year and would be a “tremendous opportunity” for both sides.

Head of international media Stewart McKee said: “The precise details of the collaboration between Shanghai Automotive Industry Corporation and MG Rover are yet to emerge, as both parties are awaiting final approval from the Chinese authorities, which is expected in the New Year.

“What’s certain is that we have started negotiations with Shanghai Automotive to enter into a wide-ranging strategic relationship.

“We have signed those agreements in June of this year and both parties have been working hard on the detail of the relationship.

“We do need the final approval of the Chinese authorities in order to proceed and that’s the point at which the final details will emerge.