SAIC Finalizes Sale of 1% of Shanghai Venture to GM

General Motors Co. has paid $119 million to Shanghai Automotive Industry Corp. for a 1% stake in their joint venture, thus returning the partnership to 50:50 status.

GM disclosed late last week that the purchase was finalized in September.

SAIC agreed last April to sell back the shares as part of a deal that split Shanghai GM into separate sales and operations units. The partners now own equal stakes in the latter, which has control over budgets, product decisions and selection of top executives. SAIC kept 51% of the sales unit.

The joint venture began in 1997 with equal ownership. GM sold the 1% holding to SAIC in 2009 for $85 million in much-needed cash. That deal allowed the Chinese carmaker to take control of the venture and report the unit's revenue on own its books.