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FAW Group is looking at acquiring Brilliance China Automotive Holdings Ltd, BMW’s main Chinese partner, in deals that may cost it some $7.2 billion and then take it private, two people with direct knowledge of the matter told Reuters.
Brilliance shares soared as much as 25.6% to HK$7.99 following the news.
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China's FAW considers acquiring BMW partner Brilliance in $7.2 bln deal -sources Back to video
The potential acquisition by state-owned FAW, China’s No. 2 automaker, comes at a time when Brilliance’s top shareholder Huachen Automotive Group is on the brink of bankruptcy, having defaulted on 6.5 billion yuan ($1 billion) in debt obligations late last year.