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Article: China : China carmakers merge assets amid industry buildup.
- Article from:
- TendersInfo
- Article date:
- November 11, 2009
CopyrightCOPYRIGHT 2009 Al Bawaba (Middle East) Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: pinto03
A state-owned Chinese automaker announced Tuesday it will take over several smaller producers amid a government effort to build up bigger domestic car companies that can compete globally.
Changan Automobile Group said it will take over the auto assets of Aviation Industry Corp. of China, which will in turn receive a 23 percent stake in Changan. They include two Chinese brands and joint ventures with Suzuki and Mitsubishi.
"That's pretty significant," said John Bonnell, an analyst for research firm J.D. Power and Associates. "It's a step toward what they're trying to get done."
Financial terms were not released, but ...