GM to Purchase Con-way’s Stake in Vector Logistics Unit
eneral Motors Corp. plans to buy Con-way Inc.’s stake in Vector SCM, a joint venture between the two that manages GM’s vehicle and parts shipments, Bloomberg reported.
GM will exercise an option to buy out the portion of Vector that it doesn't already own. Con-way, formerly CNF Inc., and GM formed Vector in December 2000.
The companies still have to negotiate a valuation for Vector and terms of the purchase, Bloomberg reported.Vector’s non-GM contracts would be transferred to Con-way’s Menlo Worldwide logistics unit, Bloomberg said.
Con-way will continue to pursue logistics business through Menlo, Con-way Chief Executive Officer Douglas Stotlar said in a statement.
