SHANGHAI Dec 8 China's Chongqing Changan Automobile Co said on Saturday it plans to buy its parent's 50 percent stake in a car venture with Peugeot SA for 2 billion yuan ($321 million), confirming a Reuters report last month.
Chongqing Changan Automobile plans to buy the stake in Shenzhen-based Changan PSA Automobiles Co Ltd from its parent Changan Automobile Group. Changan PSA Automobiles is a 50-50 joint venture between Peugeot and Changan Automobile Group that manufactures premium cars.
Chongqing Changan Automobile said in a filing to the Shenzhen stock exchange the deal will be self-financed and the transaction will require approval from shareholders, the Ministry of Commerce and the National Development and Reform Commission.
Reuters reported the deal late November quoting sources. The the rationale to sell the stake to Chongqing Changan Automobile was to streamline the parent's business. ($1 = 6.2301 Chinese yuan) (Reporting by Melanie Lee; editing by James Jukwey)