Guangzhou Auto to buy 29% of Changfeng Auto

• Source: The Global Times
• [17:00 May 21 2009]
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By Shi Jierui

On the afternoon of May 21, Guangzhou Auto will sign a formal agreement to acquire a 29 percent stake in Changfeng Auto worth 1.2 billion yuan ($17.58 million).

Other details of the deal are unclear, as the official signing ceremony was modified, with media allowed to cover the event attended by the leaders of Guangdong and Changfeng, but that other media activities were cancelled.

A source close to the matter told news website 21CN that the location of Guangzhou Auto's car production joint venture might move to Changsha, Hunan province, but no company officials would confirm the matter.

Guangzhou Auto aims to continue buying up the rest of Changfeng's shares that are now at 21.98 percent, while Mitsubishi has 14.59 percent.