FAW Group to acquire Brilliance China Automotive

FAW Group is looking at acquiring Brilliance China Automotive (1114), BMW’s main Chinese partner, in deals that may cost it some US$7.2 billion (HK$56.16 billion) and then take it private, two people with direct knowledge of the matter told Reuters.

Brilliance shares gained by 25.6 percent at HK$7.99 following the news.

Under plans being discussed, FAW would first purchase 30.43 percent of Brilliance owned by Huachen and 11.89 percent owned by the state-controlled Liaoning Provincial Transportation Investment Group, said the sources.

However, the responsible person from Brilliance China Automotive told National Business Daily they have not received the exact news, but have paid attention to media reports and have reported to managers.