Source: BAIC eyes takeover of Soueast

• Source: Global Times
• [18:29 December 17 2009]
• Comments

Beijing Automotive Industry (BAIC) is in intense negotiations to acquire a 60 percent stake of South East Motor (Soueast) owned by Fujian Motor, according to the Beijing Times, citing people familiar with the issue.

"We have raised our offer to 1 billion yuan ($146.4 million)," said an official from BAIC. Previously the company made offers worth between 500 million yuan to 700 million yuan, but Fujian Motor wasn't interested.

Guangzhou Automobile Industry Group (GAIG) was also a previous suitor in the bid, but now BAIC has financial backing and support from the Beijing municipal government and has become the odds-on favorite. "Including 20 billion yuan from the Bank of China, the company could get 30 billion yuan next year," an expert in the auto industry told the Beijing Times.

This Monday, BAIC announced that it had reached a deal with Saab to buy the Swedish automaker's intellectual property rights for some Saab 9-3 models, the current 9-5 models, and powertrain technology and tooling.

Agencies and Shi Jierui contributed to this story