Lifan denies talks of acquisition by Beijing Auto

Shanghai, May 15 (Gasgoo.com) Chongqing Lifan Automobile Co, Lifan Group's auto-making subsidiary, has denied media reports that Beijing Auto (Beiqi) was in talks to acquire it, sina.com said.

Previous news quoted Lifan president Yin Mingshan as commenting on the Beiqi-Lifan talks to the effect: "Lifan welcomes partnership talks with any auto groups provided that the tie-up allows Lifan to retain its own brand and decision-making rights on the board."

In response to these "rumored" words, Mr. Yin recently stated: "I can very responsibly say that there are no such talks; the rumor is completely baseless. Lifan has never talked with Beijing Auto about restructuring (acquisition)." This statement was echoed by a Lifan executive, who said Lifan Auto has no difficulty in its operations.  

Lifan is China's largest private manufacturer of automobiles and motorcycles. In 2008 Lifan achieved sales revenue of 13 billion yuan ($1.903 bln), and its auto sales in the first quarter this year grew nearly 50%. Last year American International Group bought a 13.5% stake in Lifan Group for $90 million.

Beijing Auto, a Daimler partner and Chinese truck-maker Beiqi Foton Motor's parent, aims to make itself an auto giant group with sales revenue to reach 100 billion yuan in 2009. To achieve this goal, one of the best ways is to merge and acquire local, national and even global auto assets.