Shulou(Shulou.com)12/24 Report--

CTOnews.com news on November 29, November 25, Changan Automobile and Huawei Technology Co., Ltd. signed a Memorandum of Investment Cooperation. After consultation between the two sides, Huawei intends to set up a company engaged in the research, design, production, sales and service of automotive intelligent systems and components solutions (hereinafter referred to as the "target company"). Changan Automobile plans to invest in the target company and carry out strategic cooperation.

Huawei Technology's new smart car software and parts company will sell shares to investors, including Changan Automobile, valued at up to 250 billion yuan ($34.67 billion), according to Reuters.

Changan Automobile and its ultimate parent company, China Arms equipment Corporation (also known as China Southern Industry Corporation), are considering buying about 35 per cent and 5 per cent of the new company, respectively, according to two people familiar with the matter. the bids of the two companies could be between 200 billion and 250 billion yuan.

Potential minority shareholders include FAW and Dongfeng Motor Group, which are also in advanced talks with Huawei to acquire up to 5 per cent each, according to three people familiar with the matter.

Huawei is likely to remain the largest single shareholder, with a stake of 40 to 50 per cent, for at least the next two or three years, according to two people familiar with the matter.

Details of the deal-particularly equity splits and valuations-have not yet been finalized and could change, according to three people familiar with the matter. One of the people familiar with the matter and a fourth person familiar with the matter said the deal would also be approved by regulators.

CTOnews.com noted from the report that the sources declined to be named and Changan declined to comment further. Huawei and other related companies did not immediately respond to requests for comment.

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