Chinese carmaker FAW Group considers buying stake in Didi Global
FAW pledges to help Didi resolve data security issues
• FAW pledges to help Didi resolve data security issues
• Carmaker will help Didi in its long-waited Hong Kong listing
China’s state-owned carmaker FAW Group Co is planning to acquire a significant stake in ride-hailing giant Didi Global Inc (NYSE: DIDI), Bloomberg reported on Friday, citing people familiar with the matter.
FAW has also pledged to help the ride-hailing company resolve issues related to data security after acquiring a major stake in the company, the report said, which will help Didi in its long-waited Hong Kong listing.
However, the discussions are at an early stage and might not lead to any transaction, a source told Bloomberg.
Shares of Didi jumped nearly 11% to $2.05 during the morning session in New York.
Didi has become a symbol of Beijing’s crackdown on technology companies since the ride-hailing firm continued with its $4.4 billion US IPO despite objections from the Chinese regulators.
China’s cybersecurity probe on Didi and subsequent series of crackdowns erased more than $70 billion in market value and disrupted the ride-hailing business, which the company has been still struggling to bring back to normal.