The 2012 Buick Regal with eAssist fuel-saving technology is introduced at a special Buick event in Chicago, Illinois, February 8, 2011.[Photo/Agencies]

General Motors Co expects to conclude a deal to bring the automaker's stake in its China joint venture back to 50 percent, Reuters reported Thursday, citing Chief Executive Daniel Akerson.

GM has told its China partner, SAIC, that it wants to buy back the 1 percent stake in Shanghai GM that it sold to the Chinese automaker in 2010 for about $85 million, Akerson said on Thursday.

"We have the right to the option to purchase back that 1 percent and we've expressed that," Akerson told financial analysts on a conference call after GM reported second-quarter results.

Under the terms of its deal with SAIC, which was negotiated in 2009 when GM was looking to raise cash and avoid bankruptcy, GM has an option to buy back the 1 percent stake it sold in Shanghai GM.

Although both automakers have said the terms of their collaboration have not changed, SAIC now ranks as the majority shareholder in the China joint-venture with a 51 percent holding.

GM holds 49 percent of the venture, which commands the leading position in the Chinese auto market.

Akerson said he expected that a deal for GM to buy back its stake in Shanghai GM would close after SAIC completes a capital restructuring it has under way.

SAIC Motor, the vehicle production arm of SAIC Group, is in the process of taking over assets from the parent company in the auto parts, alternative energy and logistics businesses.

"Once that kind of settles down, I think you'll see the transaction take place," Akerson said.

SAIC and GM are partners in a separate joint venture targeting the Indian auto market.

SAIC was an investor in GM's November 2010 initial public offering, taking a 1 percent stake in the Detroit-based automaker as it returned as a listed company after its 2009 bankruptcy.

The top Chinese automaker also has a separate joint venture with Volkswagen in China.

GM shares were down 4.7 percent at $25.88 on Thursday afternoon.