China's FAW to become GAC's second-largest shareholder as auto consolidation talk returns

<p class="P1" data-start="1882" data-end="2411">Consolidation chatter within China's automotive industry has reignited following an announcement by Guangzhou Automobile Group (GAC Group). Late on September 14, GAC disclosed that it had entered into a non-binding intent agreement with China First Automobile Group (FAW). Under the proposed transaction, GAC intends to acquire a partial stake in an undisclosed vehicle joint venture held by FAW via the issuance of new GAC shares. Upon completion of the share swap, FAW is expected to emerge as GAC's second-largest shareholder.