Beijing Auto to announce merger with Fujian Motor.
July 7, 2009
Beijing Automotive Industry Corp is ready to announce a merger with Fujian Motor Industry Group that will cement its bid to become the mainland's fourth-largest carmaker, the South China Morning Post reports on Sunday.
Citing sources, the newspaper reports that the two parties are currently finalizing the shareholding structure of the proposed new company and a formal statement on the deal is expected to be released by the end of this month.
However, Beijing Auto spokesperson Wang Hong claimed that the report is mere speculation at this point and declined to comment further.
Beijing Auto was reportedly planning to expand itself and become a Chinese auto giant like FAW, SAIC and Dongfeng by acquiring Fujian Motor and Changfeng Motor in South China. But it did not ever confirm its intention.
Fujian Motor, located in east China's Fujian province, has been cooperating with Daimler AG (for Vito and Viano), Chrysler LLC (for Dodge minivans) and Mitsubishi Motors, and these global carmakers are or were partners of Beijing Auto.