| Chinese automakers Cherry, JAC plan merger |
| Friday,September 15,2006 Posted: 07:13 BJT(2313 GMT) Xinhua |
BEIJING, Sept. 14-- Cherry, China's sixth largest carmaker and JAC, the country's largest producer of chassis and second largest producer of light trucks, will merge if the plan is approved by central authorities, the 21st Century Business Herald reported Thursday. The plan was submitted in August to the State-Owned Assets Supervision and Administration Commission under the State Council, the highest authority for all state-owned companies in China, the report said. JAC, or Jianghuai Automobile Co., Ltd., will concede shares to Cherry in exchange for using the latter's license to produce Sedans. JAC, based in Hefei, capital of Anhui Province in east China, has been eying the more lucrative sedan market for some time, but the central authorities have stopped issuing new licenses amid concerns of oversupply. The company had already poured hundreds of millions of yuan into its sedan project. A new plant with a capacity to produce 50,000 cars a year was expected to be operational in October, the report said. Cherry, also based in Anhui, was planning to launch its initial public offering (IPO) sometime next year, the report said. Cherry, one of the few Chinese automakers with its own brand, will acquire part of JAC's assets at a discounted price and get technical support from JAC for its commercial vehicle project. The merger plan was supported by the Anhui provincial government,which was keen to nurture a stronger automobile industry as competition in the industry heated up, according to the report. |
All articles marked with "Article type: Original" posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of "Source: Ministry of Commerce Website".
All articles posted on this website or its sub-sites marked with "Article type: reproduced" or "Article type: translated" and "Article type: redistributed" come from other media, and are provided solely for the user's information, which does not mean this Website or its sub-sites endorse the ideas thereof or assume any legal liability or responsibility for their authenticity. Any other media, websites or individuals must maintain the source of information indication on this Website or its sub-sites when using the information, and shall assume legal liability for the use.
