Sources say Stellantis will buy a 20% stake in Zero Motor, worth more than $1 billion

CTOnews.com, Oct. 25 (Xinhua)-- according to Bloomberg, Stellantis NV is about to reach an agreement with Zero to acquire a 20% stake in Zero.

Zero declined to comment. Stellantis said it was "studying how to seize the business opportunities related to the dynamics of Chinese manufacturers in the context of electrification of the global car market", but did not elaborate further.

The two companies are finalising the final details of the deal, which could be announced as soon as the next few days, according to a person familiar with the matter. In addition, this cooperation will also enable Stellantis to acquire some parts and technologies.

As part of the deal, Zero and Stellantis are still in talks to set up a joint venture. The source added that the cooperation may allow Stellantis to produce and sell zero-running cars outside China.

Zero's shares have risen about 22 per cent in Hong Kong this year, pushing its market capitalization to $5.4 billion (CTOnews.com note: currently about 39.474 billion yuan), while 20 per cent of the equity will be worth more than $1 billion.