UPDATE 2-Changan Auto claims China's No.3 spot with AVIC deal

Tue Nov 10, 2009 9:55am GMT
 
Email | Print | | Single Page
[-] Text [+]

* Changan Group to boost auto capacity to 2 mln units/year

* AVIC to get 23 pct stake in enlarged Changan Group

* Changan Group to take over Hafei Auto, Dongan Engine

* China's auto sector consolidation speeds up (Adds analyst comment, Changan statement, details)

By Fang Yan and Jacqueline Wong

SHANGHAI, Nov 10 (Reuters) - The state parent of Chongqing Changan Automobile Co 000625.SZ has agreed to take over major auto assets from aircraft maker Aviation Industry Corp of China (AVIC), heeding Beijing's calls to speed up restructuring in the fragmented auto industry.

The deal unveiled on Tuesday marks the lastest major consolidation of the world's biggest auto market and will boost Changan to No.3 from No.4 among China's 100-plus car markers.

Changan Automobile Group, a Ford Motor (F.N) partner, will take over minivan maker Harbin Hafei Automobile Industry Group and the China ventures of Suzuki Motor Corp (7269.T) and Mitsubishi Motors Corp (7211.T) from AVIC, Changan said in a statement.

State-owned AVIC will get a 23 percent stake in the enlarged Changan Auto Group in exchange for the assets, which also include Harbin Dongan Auto Engine Co (600178.SS) and Jiangxi Changhe Automobile Co (600372.SS).  Continued...

 

Most Popular General News on Reuters UK

  • Articles
  • Videos