China's government has approved a plan by Wanxiang Group Corp, a major Chinese auto parts maker, to acquire bankrupt U.S. battery maker A123 Systems Inc., although a deal still hinges on the outcome of an auction next month and U.S. government approval, Reuters reported today. A123, a maker of lithium ion batteries for electric cars, filed for chapter 11 protection in October with a plan to sell its battery business to Milwaukee-based Johnson Controls for $125 million. The planned sale will depend on whether better bids are received at next month's auction. Wanxiang has said it intends to make a bid. Any deal for A123 must receive the blessing of the U.S. government, however, as the company has received a $249 million grant from the Energy Department.
