China's leading automaker SAIC Motor Corp confirmed Thursday it had agreed to buy a stake in General Motors, as the US auto giant prepared for one of the largest stock offerings in history.SAIC said its wholly owned unit SAIC Motor HK Investment Ltd had acquired 15.2 million ordinary shares for 500 million dollars, accounting for just under one percent of GM's total equity.The unit paid 33 dollars per share and would raise all the capital from the Hong Kong financial market, SAIC said in the statement.
China's leading automaker SAIC Motor Corp has agreed in principle to buy a minority stake in General Motors at the US auto giant's initial public offering, state media reported Monday.SAIC, which has two vehicle production joint ventures with GM in China, may buy about one percent of GM for around 500 million dollars, the China Securities Journal reported, citing unnamed sources.SAIC president Chen Hong left for the United states last week to finalise details of the deal, the report said.
Volkswagen AG (VLKAY) has extended its cooperation with Chinese FAW Group Corp. till 2041. The German automaker has also announced to invest $126 million in its Shanghai Volkswagen proving ground, in Xinjiang province, with SAIC Motor Corp.
SHANGHAI (Reuters) - China's auto lobby has urged Beijing to support local carmakers after the regulator said it was considering further opening up the market to outside investment amid a deepening row between policymakers and state-owned car firms.