BAIC to acquire Zotye Auto

BAIC Group Co., Ltd.(BAIC Group)is seeking to acquire Zotye Auto, a Zhejiang-based automaker. Negotiations between the two sides have entered the final stage. Rumors of the possible acquisition have been circulating since early May of this year, forcing Zotye to later admit that it had been negotiating with BAIC.

BAIC has been planning to set up five production bases in across China, geographically distributing them so that there will be one each in the eastern, western, southern, northern and central parts of the country, said executives at the company during the signing ceremony of BAIC's acquisition of Guangzhou Oriental Baolong Automotive.

Zotye mainly produces pickups and small SUVs, and has production facilities in Yongkang, Zhejiang province, as well as in Xiangtan and Changsha, both in Hunan province. In 2007, Zotye set foot in the car manufacturing sector by purchasing a 70 percent stake in Jiangnan Auto, and now has the ability to produce cars, light buses, light trucks and pure electric vehicles.

The acquisition, upon completion, is expected to enhance Zotye’s competitiveness, while concretizing BAIC’s production base in eastern China.

source:
http://autonews.gasgoo.com/china-news/baic-to-acquire-zotye-auto-101030.shtml