Changan fails to complete purchase of Yunnei Power

Gasgoo.com (Shanghai July 2) - Despite having signed agreements as early as December 2010, Changan Automobile has failed to purchase Kunming-based Yunnei Power, the National Business Daily reported today.

According to an official announcement, Changan has stopped its transfer of the controlling share in Yunnei Power's chief shareholder Yunnan Internal Combustion Engine Factory from the government of Kunming. Changan and the Kunming Municipal State-owned Assets Supervision and Administration Commission have already begun procedures to officially terminate their cooperation.

At the end of December 2010, Changan signed an agreement with the city of Kunming to acquire full property rights to Yunnan, which in turn possesses a 38.14 percent stake in Yunnei. If the transfer went through successfully, Changan would become Yunnei's controlling shareholder. The manufacturer sent relevant required documents to the China Securities Regulatory Commission (CSRC) later that year. In January 2011, the CSRC replied to Changan with a request for government-approved documents. However, the manufacturer was unable to obtain official approval from the National State-owned Assets Supervision and Administration Commission, and instead requested the CSRC to delay the deadline on its application. The application deadline was extended all the way to this March, when the CSRC cancelled it, leading Changan to abandon its goal to acquire Yunnei.