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Dongfeng sets for stake in Fujian Motor

By Huang Tiantian | chinadaily.com.cn | Updated: 2013-05-15 17:45

Dongfeng Motor Corp, a State-controlled vehicle manufacturer in Shiyan, Hubei province, is planning a share purchase of more than 40 percent in Fujian Motor Industry Group, China Business News reported on Wednesday.

The two companies will sign an agreement on the deal on Thursday, but it is unclear how much the deal is worth, the report added.

The acquisition will help carry out the government's instruction of consolidating the fragmented automobile industry, the report added.

Fujian Motor was founded in 1992, and is fully controlled by the government of Fujian province. The company has five automobile manufacturing subsidiaries, including Taiwan's Yulou Motor Co, Fujian Benz Automotive Co, and South East (Fujian) Motor Co.

The acquisition does not involve the five subsidiaries of Fujian Motor, according to the report.

Dongfeng Motor is the parent of Hong Kong-listed Dongfeng Motor Group Co. Dongfeng Motor sold 3.08 million cars in 2012, according to data from the China Association of Automobile Manufacturers.

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