22/07/2005 19:00
The joint administrators from PricewaterhouseCoopers have announced the sale of the assets of both MG Rover Group and its engine producer, Powertrain Limited to Nanjing Automobile (Group) Corporation. The sale concludes a three month process following the collapse of MG Rover in early April. Nanjing Automobile (Group) Corporation was one of the two Chinese groups that had planned to become joint venture partners with Phoenix Ventures, prior to the collapse of negotiations.
Tony Lomas, joint administrator, said:
“In early June I reported to the creditors that there were no viable bidders for the business as a going concern. As a result, plans had been put in place for a break-up sale, unless a bidder pre-empted that process before it could be completed. SAIC had offered to buy the engine plant for relocation to China, so negotiations were underway to sell those assets separately.
“Whilst we have been negotiating with Nanjing Automobile (Group) Corporation we have been aware of Martin Leach’s interest in the car production assets, although no bid has ever been made by Mr Leach.
“Until late last week SAIC had offered to acquire only the Powertrain assets. On Monday of this week SAIC submitted a conditional bid for all of the MG Rover and Powertrain assets. However the level and conditionality of SAIC’s bid left Nanjing’s bid as the preferred way forward.
“Nanjing will now begin to take control of the assets and develop its plans for the future. It has indicated its intention to relocate the engine plant and some of the car production plant to China, to retain some car production plant in the UK and to develop an R&D; and technical facility here in pursuit of the same global expansion ambition that it had when it joined with SAIC as the intended joint venture partners to Phoenix Venture Holdings before the collapse of MG Rover.
“For a transition period a residual workforce will continue to be employed by MG Rover Group and Powertrain, assisting the Administrators as they have for the last three and a half months. In the meantime Nanjing Automobile (Group) Corporation intends to begin to hire staff to assist it in implementing and developing its strategy.”
ENDS
1. On Friday 8 April 2005, Ian Powell, Tony Lomas and Rob Hunt were appointed joint administrators of MG Rover Limited, while Tony Lomas, Rob Hunt and Steven Pearson were appointed joint administrators of Powertrain Limited. Steven Pearson and Rob Hunt were appointed joint administrators of MG Sport and Racing Limited on 12 April. Tony Lomas, Rob Hunt and Steven Pearson have also been appointed joint administrators to eight European subsidiaries of MG Rover Group Limited.
2. Full details of previous news releases and media updates on the MG Rover Group administration can be found on the PricewaterhouseCoopers Media Centre at http://www.ukmediacentre.pwc.com
About PricewaterhouseCoopers Business Recovery Services
1. PricewaterhouseCoopers Business Recovery Services helps rapidly to rebuild and recover value trapped in under-performing and troubled businesses. The specialist expertise available to corporates and lender institutions includes: business regeneration and turnaround, advice to banks and other lenders, investigations, and insolvency services. The world's largest dedicated business recovery practice, it has over 2,000 professional staff globally assisting troubled companies and, in the UK, includes some of the country's leading insolvency practitioners and CEO-level turnaround managers.
2. PricewaterhouseCoopers (www.pwc.com/uk) provides industry-focused assurance, tax and advisory services for public and private clients. More than 130,000 people in 148 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders.
Unless otherwise indicated, PricewaterhouseCoopers refers to PricewaterhouseCoopers LLP a limited liability partnership incorporated in England. PricewaterhouseCoopers LLP is a member firm of PricewaterhouseCoopers International Limited.
A popular MG model: The TF.


Administrators PriceWaterHouseCoopers (PWC) have announced that the British car company MG Rover and its engine manufacturer Powertrain Ltd has been sold to Chinese company Nanjing Automobile for an unknown sum of money. The company beat bids from Shanghai Automotive (SAIC), despite being the smaller of the two.

MG Rover collapsed this Spring, after struggling to make a profit for several years.

SAIC had tried to buy only the engine plant and then transfer it to China, but in June Nanjing Automobile approached PWC with a combined bid for both the car manufacturing company and Powertrain. This Monday SAIC bid for both but the offer was inferior to Nanjing's.

Nanjing has indicated that it too will move the engine production plant to China, along with some car manufacturing. However it also intends to continue building cars in Britain, and establish an engineering research and design centre there in an effort to expand its sales globally. Nanjing intends to start hiring at once.