Oct. 25 (Bloomberg) -- Shanghai Automotive Industry Corp. (SAIC), China's largest automaker, received government approval to transfer shares in a listed unit to Nanjing Automobile Group Corp.
Shanghai Auto received notice recently from the local state-asset supervision and administration agency to transfer 320 million shares in SAIC Motor Corp. to Nanjing Auto, the listed unit said in a statement to the Shanghai Stock Exchange today.
Nanjing Auto will not sell the shares within 20 months after the transaction is completed, SAIC Motor said in the statement. After the transfer, Shanghai Auto will hold 78.94 percent of SAIC Motor, and Nanjing Auto will hold 4.88 percent, according to the statement.
Shanghai Auto signed an agreement in December to buy Nanjing Auto's auto-assembly and component-making businesses as China urges its carmakers to consolidate.
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