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SAIC agrees to sell one percent share back to GM

SHANGHAI – After seven months’ effort, GM has finally gained approval of SAIC in purchasing back 1 percent stake that it sold to the latter in 2009. According to Dan Akerson, chairman and CEO of GM, an equal equity of the joint venture is vital to the company, for Shanghai-GM would turn out to be a company of $30 billion-$40 billion instead of a $20 billion one in the near future.

SAIC will have less board seats in Shanghai-GM as its stake shrinking, reported local media.

A sales company controlled by SAIC will also be established at the beginning of 2012 to ensure the consolidation of financial reports of Shanghai-GM to SAIC.

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