According to Saab CEO Victor Muller, a very important portion of the deal has already gone through; a cash infusion of €30 million ($42M USD). Muller states that "Pang Da's advance payment and sales of imported Saab cars are not subject to approval from the NDRC. The first advance payment of EUR 30 million was received last Tuesday."
Bloomberg reports that the rest of the deal may not move forward so easily. According to analysts in China, the country's government is unlikely to allow Pang Da's purchase of a stake in Swedish Automobile N.V. because the nation is working to consolidate its auto industry, not expand it.
If approved, however, Pang Da will spend $91 million and receive a 23 percent share of the automaker's business. Despite the negative view of Chinese analysts, Pang Da says it remains confident the transaction will be approved.
Zeewolde, The Netherlands, 23 May 2011 - Spyker Cars N.V. (Spyker Cars) and Saab Automobile AB (Saab Automobile) confirm that Pang Da Automobile (Pang Da) has entered procedure discussions with Chinese authorities, including the National Development and Reform Commission (NDRC), to obtain regulatory approvals for the investment in Spyker Cars and Saab Automobile.
Spyker Cars is to be renamed Swedish Automobile N.V. shortly. The general meeting of shareholders has decided so.
Victor Muller, CEO of Spyker Cars and Saab Automobile, said:
"Based on our discussions with Pang Da we are confident that Pang Da will get the regulatory approvals needed to formalize the deal. I am very much looking forward to creating a strong business with Pang Da, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China. What needs to be pointed out is that Pang Da's advance payment and sales of imported Saab cars are not subject to approval from the NDRC. The first advance payment of EUR 30 million was received last Tuesday."