CHINA: Beijing Auto eyes smaller rival for listing
Beijing Automotive Industry Holdings Co (BAIC) plans to launch a buyout for smaller rival Baolong Auto as part of an ongoing plan to list itself on the Shanghai exchange, a Chinese newspaper reported on Tuesday.
BAIC, the country's fifth-biggest car maker, will make a detailed announcement about the plan in the next few days, the China Business News reported, citing unnamed sources from BAIC, according to Reuters.
BAIC plans to inject its automotive business into loss-making Baolong Auto when it completes the buyout, the newspaper said.
BAIC plans to group together its passenger vehicle businesses this year before floating the unit, its President Wang Dazong said in an interview with Reuters last May.
The company, which produces vehicles in partnerships with Daimler and Hyundai Motor, aims to raise capital to help it expand and quickly move up the production ladder.
Last year, BAIC paid US$200m to buy technologies from General Motors' Saab unit.