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.
The news comes days after the Didi received shareholders’ approval to delist from New York Stock Exchange attempt to appease Chinese regulators.
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.
Picture Credit: BBC
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