Chinese auto parts supplier Wonder Auto Technology Inc. said Monday it signed agreements with two state-owned banks to supply cash for the company's operations and for possible future acquisitions.
The Chinese auto industry has been undergoing rapid growth. China last year overtook the U.S. as the world's largest auto market. Wonder Auto CEO Qingjie Zhao said that growth will present the company with future merger and acquisition opportunities in the future.
"The strategic framework agreements with the commercial banks will lay a solid foundation for Wonder Auto's fast growth in the future as well as for the potential mergers and acquisitions," he said.
The company, which makes automotive electrical parts, suspension products and engine components, did not name the banks, but described them as "major state-owned commercial banks."
Wonder Auto, based in Jinzhou City, China, said the loan agreements will provide it with up to 50 percent of the financing costs for future mergers and acquisitions.
