Dongfeng is difficult to enter the Fu steam gate
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Dongfeng Motor Company formally "hands in" Fujian Automobile Group on May 16 last year. This is a major merger and reorganization incident in China's auto industry since the acquisition of CNAC by Changan Automobile in 2009.
According to the plan at that time, Dongfeng will acquire 45% of the shares of Fuzhou Automobile Co., Ltd. held by Fujian Provincial SASAC in a capital increase manner. At the same time, Dongfeng and Fuqi intend to set up a 50% stake in the southeast of the investment company. As expected, after Dongfeng Motor and the Fujian Provincial Government signed the framework cooperation agreement, the third party organization officially initiated the audit and asset evaluation of Fuqi Group. The two parties signed the equity transfer and capital increase agreement as soon as possible in September 2013.
A year later, the restructuring of Fuqi and Dongfeng Motor failed to achieve its goal and the negotiations ended due to a stalemate.
In an interview with the media recently, the response of Lian Xiaoqiang, Chairman of Fuzhou Automobile Group, was very meaningful. “Cooperation with Dongfeng is in love, because there are many factors that cannot be grasped by personal wishes. It can be achieved without success. Wishful thinking can't be successful.†
