Jianghuai Auto denies plan for merger with Chery

Shanghai, July 31 (Gasgoo.com) Jianghuai Automobile Co Ltd (JAC) has again denied news of its plan for restructuring with Chery Automobile Co., Ltd. within the next three months, saying there will be no immediate equity transfer or new share sale, Nanfang Daily reported.

This time, JAC quoted its provincial regulator, the state-owned assets supervision and administration commission, has not started studying the possibility of their merger, and commission's work schedule has not included the plan in the short term, as the company said in its filing with the Shanghai Stock Exchange earlier this week.

The first clarification came out on June 2, when JAC said it had no immediate plan for restructuring with Chery, not ruling out the possibility that such a move would occur in three months. On July 23, state media reported that Chery and JAC were set to officially merge and become Da-An Motors.

Although JAC has repeatedly denied the restructuring story as an involved party, it has benefited from the merger news. Its stock reached limit up on July 23. The waiting game is now played again to draw further attention and expectations.

Both headquartered in Anhui province, central China, JAC and Chery are respectively strong in the commercial and passenger vehicle segments. The provincial government recently released a boost plan for its auto industry, urging JAC, Chery and other two local auto/engine makers to merge.

JAC produces 450,000 vehicles annually, including light trucks and multipurpose vehicles. Its flagship models are the JAC Refine and an MPV similar to the Hyundai Starex.