The first step for Chinese auto companies to acquire foreign auto companies will begin on the 28th of this month. According to foreign reports, SAIC Motor will sign a formal agreement on the acquisition of Ssangyong Motor's equity on Thursday. It is understood that this timeline is in full compliance with the SAIC Group's acquisition schedule. A spokesman for SAIC Group Xue Hao said in an interview with reporters earlier that SAIC Motor’s acquisition of Ssangyong Motor is proceeding smoothly and the timetable is fully in line with the memorandum of understanding signed by both parties. . Foreign media reported yesterday that Kim Beom Seok, spokesperson for Ssangyong Motor Co., said in an interview with the media that SAIC's leadership plans to visit two plants of Ssangyong Motor Co. from Monday to Thursday. In addition, the largest creditor of Ssangyong Motor Bank Chaoxing Bank revealed to the media that SAIC Motor Group will sign an agreement to acquire 48.9% of Ssangyong Motors on Thursday. According to reports, SAIC will pay about 500 million U.S. dollars for this purpose. Chaoxing Bank is a major creditor of Ssangyong Motor Company. SAIC Motor’s acquisition of South Korea’s Ssangyong Motor began in June last year. During this period, Bluestar Group, another state-owned company, had obtained preferential bid rights in late December last year due to price advantage. However, in March this year, the two parties suspended the acquisition due to price talks. According to the information, the industry believes that the withdrawal of Bluestar has nothing to do with the approval of the relevant state agencies. On July 23 this year, SAIC beat its last rival, a US pension fund company, to become the preferred bidder for 48.9% of Ssangyong Motors Korea. Chao Hing Bank said at the time that SAIC was selected because SAIC Motors ranked the highest in terms of price, terms of acquisition and future business development plans. In addition, when SAIC signed a MOU with Ssangyong Creditor Zhaoxing Bank, it also stated that it will continue to expand Ssangyong’s business in Korea, retain and improve the company’s existing equipment, and make necessary investments in the future. At the same time, SAIC will work with Ssangyong to explore ways to expand Ssangyong's business to the international market, including the Chinese market. In addition, regarding the layoffs and welfare benefits that Ssangyong Trade Union was worried about, SAIC said that it believes that the existing management team and employees are very important to maintain the continued success of Ssangyong's future operations. Therefore, the existing management and staff teams will be retained after the acquisition. Industry insiders believe that if SAIC bought SsangYong, South Korea’s fourth-largest automaker, it will be the first Chinese company to acquire foreign auto companies. After SAIC Motor’s acquisition of Ssangyong Motor Co., Ltd., it can rapidly upgrade its technology and accelerate the pace of production of its own-brand automobile, while at the same time enabling Ssangyong to gain a foothold in the Chinese market. (Qian Yujuan)
View related topics: SAIC commercial vehicle expansion