(Corrects to remove stock RIC code linked to BAIC in first
* BAIC to acquire Baolong, securing foothold in south China
* To invest $736 mln in southern China plants
(Adds details, background)
BEIJING, Aug 18 Beijing Automotive Industry
Holding Co (BAIC) said on Wednesday it had agreed to take over
smaller rival Guangzhou Baolong, securing a foothold in the
competitive southern China market.
BAIC, a China partner of Daimler AG (DAIGn.DE) and Hyundai
Motor Co (005380.KS), will also invest 5 billion yuan (about
$736 million) to expand Guangzhou Baolong's existing plant in
southern China and to add a new plant, the company said in a
BAIC, which had earlier acquired some assets of Saab from
General Motors, has been planning to expand its national
presence in China, now the world's largest auto market.
The deal, if it goes ahead as planned, will give
Beijing-based BAIC a foothold in southern China, where Guangzhou
Automobile and its partners, Toyota Motor (7203.T) and Honda
Motor (7267.T), dominate.
Volkswagen AG (VOWG.DE), strong in northern and eastern
China, also plans to build a greenfield facility in southern
China with a maximum annual capacity of 300,000 units.
(Reporting by Fang Yan, Michael Wei and Ken Wills)