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Business
Evergrande Group acquires majority stake in electric vehicle producer for USD 930 mln
CKN
2019/01/16 02:24:57
1,707
China's News, China's Financial News, Evergrande Group

Jan 16, 2019 (China Knowledge) - Chinese property developer Evergrande Group has just acquired an electric vehicle producer in the country as it looks to diversify its business away from real estate into the emerging industry of electric vehicles.

The developer will be purchasing the stake through its subsidiary and will be paying USD 930 million for a 51% majority stake in National Electric Vehicle Sweden (NEVS). The company has just paid its first installment of USD 430 million on Tuesday this week and will complete the transaction by the end of this month.

This is Evergrande’s second foray into electric vehicles after the company purchased a 32% stake in Faraday Future for USD 2 billion.

NEVS is a Chinese consortium owned by the Tianjin municipal government, a research arm of the Chinese cabinet’s think tank and telecom operator China Unicom. The company currently assembles cars in Tianjin under its own brand but using the Saab 9-3 platform, with two of its models having met the requirements for mass production in China.

Evergrande believes that by making strategic acquisitions, the group will be able to strengthen its competitiveness in the new energy vehicle industry in China and capture greater market share while also diversifying its business.

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