Wanxiang in new push for A123 Wanxiang, the Chinese industrial group, is planning a novel approach to push forward its takeover of the majority of A123 Systems, the US-based advanced battery manufacturer, in an attempt to deflect pressure on the US authorities to block the deal. The Chinese company is working on a plan to form a new independent trust to buy A123"s civilian unit, which makes up the bulk of its operations, after the company went into bankruptcy in October. Wanxiang would then acquire the business from the trust, if it can secure approval from the Committee on Foreign Investment in the US, the opaque government body that reviews foreign takeovers for national security implications. The plan, still being worked on by the companies" lawyers, is being proposed as a way to get a payment to A123"s creditors without falling foul of Cfius. Wanxiang's attempt to buy the A123 businesses comes at a time of heightened US concern about other countries, particularly China, gaining access to strategically significant assets. A123"s batteries for electric vehicles and power grids, developed with the help of about $130m in federal government grants, have become the prize in a struggle between competing commercial and policy interests. In a statement late on Friday, A123 said it expected the Wanxiang deal to close by February 1. Pin Ni, president of Wanxiang America, told the Financial Times he hoped to have it done in two weeks, subject to regulatory approval. However, Cfius is coming under pressure to block the deal. A123"s defence division, which supplies batteries to the US military for vehicles, satellites and other uses, was sold separately to Illinois-based Navitas for $2.25m, in an attempt to satisfy national security concerns. Wanxiang bid $257m for the civil business, offering the largest recovery for A123"s creditors, and held out the prospect of sustained investment in the company so that it could continue to develop. However, the US authorities have already posed difficulties for its interest in A123. A rescue plan involving an investment of up to $450m by Wanxiang was announced back in August but did not go ahead, apparently because it could not secure Cfius approval. The Strategic Materials Advisory Council, a group that argues for the retention of US control over businesses with military applications, called on Cfius either to block the deal or to impose controls to ensure A123"s knowhow was retained in the US. Dean Popps, the former top procurement executive for the US Army, who is a member of the council, said: "The number one job of the government is national security of the US, and the government needs to do its job here. It cannot pass this off as just another commercial transaction. Members of US Congress including Chuck Grassley, a Republican senator from Iowa, have also criticised the proposed deal.