Wanxiang Group announced on Jan. 29 that the U.S. Committee on Foreign Investments in the U.S. (CFIUS) finally approved the group’s acquisition of American car battery manufacturer A123 Systems Inc.

The newly established wholly owned subsidiary of Wanxiang (America), A123 System Limited, has completed the acquisition of all non-governmental assets of the original A123 Systems Inc, including cars, power grid and commercial assets such as technology, products, clients’ contracts and factories in China and the U.S.

As a result of a Dec. 8 auction last year, Wanxiang Group will pay $256.6 million for all assets of A123 Systems Inc. except contracts with governments, which have been opposed by many American domestic interest groups.

For example, Republican Marsha Blackburn of the U.S. House of Representatives said last weekthat President Barack Obama should prevent Wanxiang from acquiring A123 Systems to fulfill his promise to guarantee the stemming of the outflow of America’s job-creating new technologies.

“All are in the plan,” said Ni Pin, president of Wanxiang Group (America) to 21CBH, withthe settlement and delivery to be completed soon. “We have never changed the acquisition plan since August 2012 and the governmental approval is just a procedural problem.”

Wanxiang Group signed a strategic investment contract with A123 Systemslast August in a deal of $465 million to directly control the latter. However, A123 Systems suddenly declared bankruptcy two months later as it could not fulfill its contract with Wanxiang and signed a $12 million auto business acquisition contract with Johnson Controls.

When outsiders all believed Wanxiang had failed in theacquisition, Johnson Controls gave up in the end of October 2012, providing debtor-in-possession financing. The move offered an opportunity for Wanxiang to continue the acquisition.

As a leading company in the new energy industry, A123 Systems was born in MIT and has been regarded as the most advanced lithium battery manufacturer with its core technology beingapplied to the defense industry. Meanwhile, A123 Systems has received automobile development subsidies from the U.S Department of Energy with a total value of about $250 million, $130 million of which was been received before the auction.

As a result, Wanxiang announced at the very beginning to abandon A123’s governmental contract assets including military contracts.

Wanxiang Group, a family business with assets of over $13 billion, has operated in the U.S. for over two decades, but is still in the investment and exploration phase.

According to Wanxiang, the company will continue to develop technology after the acquisition.