HONG KONG: China’s Didi is in talks with Sinomach Automobile to own a third of the latter’s electric-vehicle making unit, two sources said, signalling the ride-hailer is trying to get back to growth after its regulatory troubles.
The talks for a stake in small-sized automaker Sinomach Zhijun Automobile are in an advanced stage, the sources told Reuters.
One of them said the two sides have given themselves time till the month-end to nail the deal, which will see Didi Global Inc become the second-biggest shareholder of the EV maker after state-backed Sinomach Automobile.
Chinese regulatory scrutiny hurt Didi’s business and forced it to pursue a delisting from New York. News of the talks, which come after a Wall Street Journal report on Monday that regulators are set to conclude their investigations into Didi, could offer more hope to investors about its recovery.
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Didi, Sinomach Automobile and Sinomach Zhijun did not respond to requests for comment.
The sources, who have direct knowledge of the deal talks, declined to be identified due to confidentiality constraints.
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