Gasgoo Munich- Luxshare Precision is poised to take control of BWI International, marking another wave of cross-sector consolidation in the automotive supply chain.
Late on May 10, BWI International (02339.HK) — which has been suspended from trading for some time — released a major disclosure regarding a change in equity. According to a notice from its controlling shareholder, Jingxi Zhixing Group, Luxshare Precision (002475.SZ) signed a conditional acquisition agreement on March 30. Luxshare Precision plans to acquire the 59.5% stake in BWI International indirectly held by Jingxi Zhixing.
Once the deal closes, Luxshare Precision will indirectly hold a majority stake in BWI International, becoming the ultimate controlling shareholder of this established auto components manufacturer. Gasgoo contacted executives at BWI International regarding potential business adjustments following the agreement, but had not received a response by the time of publication.
On the regulatory front, Luxshare Precision has applied to the China Securities Regulatory Commission for a whitewash waiver, aiming to avoid a mandatory general offer obligation triggered by crossing the shareholding threshold. Regulators have signaled in principle their intention to grant the waiver. Meanwhile, the board of BWI International moved to reassure the market, stating that the potential change in ultimate control will not materially impact the group's existing operations. Buoyed by the news, BWI International shares will officially resume trading on the morning of May 11.
This isn't Luxshare Precision's first foray into the automotive sector. However, extending its reach to BWI International — a company with deep roots in core chassis technology — sends a clear signal that the consumer electronics giant is pushing deeper into the smart vehicle race.
