AutoBeta(AutoBeta.net)11/24 Report--

Volkswagen's stake in Jianghuai was approved by anti-monopoly examination. Upon completion of the deal, Volkswagen China Investment will hold a 50 per cent stake in JAC Holdings and a 75 per cent stake in the joint venture Jianghuai Volkswagen.

On November 24, Jianghuai Automobile issued an announcement that the company today received notice from Volkswagen China Investment, according to the investment agreement signed by Volkswagen China Investment with Anhui SASAC and JAC on June 11, as well as the investment agreement with Jianghuai shares and JAC Volkswagen. Volkswagen China Investment has submitted an anti-monopoly review declaration to the anti-monopoly review authorities of the relevant countries with pre-declaration obligations on the transactions under the two investment agreements.

As of November 23, Volkswagen China Investment has obtained the approval of the antitrust review department for the project in the relevant countries.

In May this year, Jianghuai Automobile issued an announcement that Anhui SASAC, Volkswagen China Investment and Jiangqi Holdings signed a letter of intent on increasing capital to Anhui Jianghuai Automobile Group holding Co., Ltd. Volkswagen China Investment will acquire a 50 per cent stake in Jiangqi Holdings through a capital increase. After the capital increase, Volkswagen China Investment will hold a 50 per cent stake in Jiangqi Holdings, while Anhui SASAC holds a 50 per cent stake and still controls Jiangqi Holdings. In addition, JAC will facilitate a final agreement between Volkswagen China Investment and Jianghuai shares to increase capital to Jianghuai Volkswagen, which will be 75% owned by Volkswagen China Investment.

Volkswagen will invest 1 billion euros (about 7.8 billion yuan) to acquire a 50% stake in Anhui Jianghuai Automobile Group holding Co., Ltd., the parent company of Anhui Jianghuai Automobile Group Co., Ltd., according to an official notice from Volkswagen. At the same time, it will increase its stake in the electric vehicle joint venture Jianghuai Volkswagen to 75%, gain the management right of the joint venture and change the enterprise management model.

JAC also said that Volkswagen Group was willing to award mainstream brands and a range of new energy products to the joint venture Volkswagen Group after Volkswagen China Investment became a direct shareholder in the joint venture. The joint venture will gradually expand its scale and strive to reach an annual production capacity of 350000-400000 vehicles by 2029.

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