Beijing Auto resumes talks to acquire Fujian
Beijing Automotive Industry Holding Corp. has resumed talks with domestic peer Fujian Motor Industry Group Co. about a possible acquisition of Fujian Motor, according to Chinese media.
The talks were brokered by Daimler AG, which has partnerships with both companies, reported the Beijing Times, which cited a senior BAIC executive.
Beijing Benz Automotive Co., BAIC's joint venture with Daimler, builds the Mercedes C- and E-class sedans and the Mercedes GLK compact SUV in suburban Beijing.
Fujian Daimler Automotive Co., a joint venture between Fujian Motor and Daimler, produces Mercedes commercial vans such as the Viano in Fuzhou, a city in east China's Fujian province.
By encouraging the acquisition, Daimler aims to integrate its Chinese operations. Meanwhile, BAIC wants to buy Fujian Motor in order to expand its market share, the state-owned newspaper reported.
In 2009, BAIC signed a tentative agreement to acquire a 40 percent stake in Fujian Daimler from Fujian Motor.
But the deal collapsed when the two parties disagreed on price and Guangzhou Automobile Group Co. made a rival bid, according to the newspaper.
