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Exclusive-Didi in talks to own a third of China EV maker Sinomach-sources -Breaking


© Reuters.

By Julie Zhu

HONG KONG (Reuters – China’s Didi talks with Sinomach Automobile for a third in the electric-vehicle manufacturing unit of the latter, according to two sources. This indicates that the ride-hailing company is looking to bring back growth following its regulatory difficulties.

Sources told Reuters that talks to acquire a share in the small-sized automaker Sinomach Zhijun Automobile have advanced. Sources said that Didi Global Inc, after Sinomach Automobile and state-backed Sinomach Automobile, has given itself time to close the deal.

Didi’s company was severely affected by Chinese regulations and it had to delist from New York. The news about the talks comes after the Wall Street Journal reported Monday that Didi regulators will be closing their probes. This could give investors more hope for its recovery.

Didi, Sinomach Automobile, and Sinomach Zhijun didn’t respond to our requests for comment.

Due to confidentiality constraints, the sources who are directly aware of the negotiations declined to identify themselves.