Reuters. SAIC Motor Corp and Nanjing Automobile Group announced a long-expected merger, creating a larger Chinese national automaker which will be better positioned to compete with the multinationals.
SAIC Motor will pay 2.095 billion yuan ($285.7 million) for the vehicle and core auto parts operations of Nanjing Auto, owner of the MG Rover brand. Nanjing Auto’s parent company, Yuejin, will receive 320 million shares in SAIC Motor, equal to 4.9% of the total shares.
“Faced with global competition, we need to go down the path of mergers and consolidation,” SAIC Motor Chairman Hu Maoyuan told reporters.