BRANTFORD, ontario – Chinese company Bohong has received the necessary approval from the Peoples Republic of China to go ahead with their takeover of the Brantford-based Wescast Industries.

The deal had needed the approval of the National Development and Reform Commission (NDRC), which is required for any transaction related to foreign investment outside of China.

The purchase has been in the works since June 1st, 2012 but Bohong had experienced difficulties securing financing, and as recently as August 31st had been forced to pay a $2 million penalty to Westcast. That payment had extended the purchase deadline to November 30th.

Wescast and Bohong have also entered into an amending agreement to the will see Bohong (through its wholly-owned subsidiary, Taixing International Investment Limited), loan Wescast $35 million to enable them to repay outstanding debts.

The total value of the deal is pegged at $195 million.

Wescast Industries casts exhaust manifolds for passenger cars and light trucks. They also design, cast, machine and assemble exhaust system components. Wescast employs approximately 2,100 people in seven production facilities and five sales and design centres in Canada, Hungary, the United States, Germany, Japan and China.