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Didi Seen in Talks For Stake in China EV Maker Sinomach

China’s Didi Global is in talks to buy a third of Sinomach Zhijin Automobile, a small maker of electric vehicles, sources revealed on Wednesday


China's Didi Global is in talks to own a third of Sinomach Zhijin Automobile, a small maker of electric vehicles, sources have revealed.
The app logo of Chinese ride-hailing giant Didi is seen on its navigation map on a mobile phone. The group is reportedly in talks to buy a stake in Sinomach Zhijun Auto, a small maker of electric vehicles. Photo: Reuters.

 

China’s Didi Global is in talks to own a third of Sinomach Zhijin Automobile, a small maker of electric vehicles, sources revealed on Wednesday.

The news, from two sources who declined to be identified, is seen as a sign that the ride-hailing company, which faced a regulatory blitz after it listed in the United States about a year ago, may have resolved its issues with Chinese authorities.

The talks for a stake in Sinomach Zhijun Automobile are in an advanced stage, the sources said.

One said the two sides have given themselves until the end of June to nail the deal, which would see Didi Global Inc become the second-biggest shareholder of the EV maker after state-backed Sinomach Automobile.

Chinese regulatory scrutiny hammered Didi’s business last year and forced it to pursue a delisting from New York.

News of the talks, which come after a Wall Street Journal report on Monday that regulators are set to conclude their investigations into Didi, could offer more hope to investors about its recovery.

Didi, Sinomach Automobile and Sinomach Zhijun did not respond to requests for comment.

The sources, who have direct knowledge of the deal talks, declined to be identified due to confidentiality constraints.

 

• Reuters with additional editing by Jim Pollard

 

ALSO SEE:

Didi Shareholders Vote to Delist from New York Stock Exchange

Didi Slashes UK Staff, Delays EU Rollout Until 2025 – Guardian

China to Conduct Cybersecurity Review of Ride-Hailer Didi Global

China Sends Officials From 7 Agencies to Probe Didi Amid Cybersecurity Row

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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