Guangzhou Automobile plans to acquire 50% stake in FAW Toyota
GAC said in a Shanghai Stock Exchange filing it will fund the deal through a share issue priced at 5.75 yuan per share.
(Add bullets with details, background) BEIJING, Sept 28 (Reuters) — Guangzhou Automobile Group plans to acquire a 50% stake in FAW Toyota from a unit of state-owned automaker FAW Group through a share issue, GAC said in a Shanghai Stock Exchange filing on Monday. 8569) per share and it plans to raise supporting funds. The transaction value has not yet been determined pending the completion of audit and asset valuation work. China, the world's largest auto market, has vast overcapacity and more than 100 competing car brands.
Toyota's strategy of separate partnerships with FAW and GAC in China is becoming less compelling as market growth slows, competition intensifies and the EV shift squeezes profits. The deal is one of the key projects to deepen strategic cooperation between FAW Group and GAC, the filing said. GAC said that the FAW Group unit will become its second-largest shareholder and play a significant strategic role. com;)