Article: China : Changan Automobile To Take Over AVIC Auto Assets.

Byline: Mamta03

Changan Automobile Group Co. said Tuesday it will take over several automobile companies now owned by state-owned conglomerate Aviation Industry Corp. of China in a restructuring that could indicate the long-awaited consolidation of China's highly fragmented automobile sector is gaining momentum.

AVIC will get a 23% stake in Changan Automobile in exchange for Harbin HF Automobile Industry Group Co., Jiangxi Changhe Auto Co. (600372.SH), and Harbin Dongan Auto Engine Co. (600178.SH), as well as Chinese joint ventures with Suzuki Motor Corp. (7269.TO) and Mitsubishi Motors Corp. (7211.TO), Changan Automobile said in a statement.

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