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Chinese buy Ontario auto parts maker

Published by Steve Coleman on September 06, 2011

A Brantford, Ont. autoparts maker may soon have new owners.

Wescast Industries said Sept. 6 that it has agreed to sell to China's Sichuan Bohong Indstry Co. for an estimated $13.60 per share once financing is finalized.

The deal makes the world's leading supplier of cast iron exhaust manifolds for passenger cars and light trucks worth about $80 million. Wescast has already agreed to take a $2 million deposit from the Chinese company to help the deal go through.

Bohong is waiting on committed financing from China Development Bank to seal the deal. Until then, it has exclusivity on Wescast shares until Dec. 30. The period can be extended by further deposits.
Wescasts' current client list includes companies in North America, Europe, Asia, Africa, South America and Australia.

"Bohong intends to build on Wescast's long history and believes that this acquisition would assist Bohong and China's automobile industry to reach a new platform in servicing global customers," Bohong Chief Executive Dong Ping said in written statement appearing in a Thomson Reuters news story.

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