China GAC to Buy FAW Stake in Joint Venture
Guangzhou Automobile Group signed a letter of intent to acquire part of FAW Group stake in a vehicle joint venture. The proposed deal aims to consolidate two Toyota partnerships in China under a new structure.
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GUANGZHOU AUTOMOBILE GROUP-H signed a letter of intent on Monday morning to acquire part of FAW Group's stake in an undisclosed vehicle manufacturing joint venture in China through a share issuance and capital raise. The proposed transaction follows discussions between major domestic automakers in the world's largest car market. If completed, FAW will become the second-largest shareholder in GAC with strategic influence.
