French tyre maker Michelin and Shanghai Huayi Group Corporation, parent company to one of China`s top tyre makers, are in final stage talks in negotiating a joint venture, reports the UK`s Financial Times (19/7/00).

Officials at the Shanghai Corporation confirmed the conclusion of the deal in local media, although a Michelin official in Beijing declined to comment.

The expected conclusion of the deal saw Shanghai Tyre`s `A` and `B` shares, for domestic and foreign investors, rise by the maximum-allowed 10 per cent.

The F.T. reports that both companies are awaiting formal approval of the deal from the central government body that oversees foreign investment.