American Axle & Manufacturing (AAM) is in talks with China’s merger control regulator to finalize a remedy package for its proposed acquisition of the UK-based driveline supplier Dowlais, according to a source familiar with the matter.

The State Administration for Market Regulation (SAMR) is holding discussions with deal parties regarding the remedy proposal, the source noted.

The agency has yet to suspend the review clock on the USD 1.44bn deal as of the end of November, the source said.

According to an earlier report by this news service, the New York-listed AAM prepared remedies to address SAMR’s concerns in early November regarding the cash-and-stock transaction with the London-listed Dowlais. The remedies were likely submitted to SAMR around that time, as reported.

Based on the assessment from the available information, the remedy talks have been ongoing for about one month.

The tie-up between the two automobile component providers was formally accepted by SAMR around mid-July, according to this news service’s report.

Based on the statutory review timeline, the SAMR review is approaching the second month of Phase III, which is set to expire at around early- to mid-January 2026.

SAMR usually suspends its review clock in late Phase III when a deal needs remedies to address concerns.

According to this news service’s study, SAMR has suspended review clocks in nine conditionally cleared deals. While two suspensions occurred in Phase II, the majority (seven) took place in Phase III, specifically around the 37th day on average. This suggests that SAMR typically suspends the review clock during the second month of Phase III.

The study further indicates that the duration of the suspension period varies depending on the complexity of the case.

For straightforward deals, the suspension spans between 53 and 64 days, or around two months. For moderately complex deals, it generally ranges from 147 to 189 days, or approximately five to six months. For the most complex deals, the suspension typically lasts between 332 and 532 days, or about one to one and a half years.

On average, SAMR grants approvals within a week after the clock resumes.

On 7 November AAM’s Chairman and Chief Executive Officer David C. Dauch said in a 3Q FY25 results briefing that AAM delivered strong year-on-year margin growth, noting the company continues to make progress in its combination with Dowlais, positioning the company “well for a bright future as a premier global driveline and metal forming supplier with significant size, scale, and value creation potential”.

According to a 27 October release, AAM said deal parties expect to obtain SAMR clearance in late 2025 or early 2026. Based on progress to date, AAM anticipates that the combination will close in the first quarter of 2026, the announcement said.

On 6 November, the deal received final unconditional approval from Brazil’s competition authority CADE. Now, clearances from China’s SAMR and Mexico’s competition authority are pending. AAM stated in the same document that clearance in Mexico is anticipated in the fourth quarter of 2025.

AAM and Dowlais did not respond to the request to comment.

SAMR does not comment on ongoing deals.