SAIC Motor's purchase of Huayu gains official approval

Gasgoo.com (Shanghai August 3) - One of SAIC Group's subsidiaries, SAIC Motor, has taken majority control of fellow subsidiary Huayu Automobile today, Securities Daily reported. According to announcements from both companies, their submissions to the China Securities Regulatory Committee were a success. The news also represents full resumption of trading for the SAIC Group as a whole.

According to information from SAIC Group, SAIC Motor bought 1.55 billion shares of Huayu, a Shanghai-based bus manufacturer, taking 60.10 percent control of the company. SAIC Motor spent a total of 15.49 billion yuan ($2.41b) for the transaction.

SAIC Motor also bought almost 1.73 billion shares at a rate of 16.53 yuan ($2.575) from its parent to take control of 22 of the group's independent businesses, including autopart, trade/service and new energy operations.

The news received warm greetings from market analysts, who anticipate that SAIC Group's lofty task of restructuring will probably be completed within the year.