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
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)