China’s Xpeng to acquire Didi’s smart EV unit in deal worth up to $744 million

Chinese electrical automobile firm Xpeng stated it is going to purchase ride-hailing big Didi’s good electrical car unit and the 2 corporations will type a strategic partnership.

Xpeng’s shares surged round 16% in early Monday commerce.

As a part of the deal, which could possibly be price as a lot as $744 million, Xpeng will launch an A-class mannequin subsequent 12 months beneath a brand new model, at present known as MONA, aiming to increase within the mass-market section.

“Project ‘MONA’ will accelerate the Company’s production and sales growth and help achieve greater economies of scale,” Xpeng stated in a press release.

Didi will assist the launch by “providing access to its mobility market” and the 2 corporations will discover strategic cooperation in numerous areas, together with advertising and marketing, monetary and insurance coverage providers.

Didi will purchase round 3.25% of Xpeng shares beneath the deal, which might improve relying on whether or not manufacturing and gross sales targets are fulfilled. The possible most deal worth of $744 million contains potential milestone funds.

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