(Yicai Global) Feb. 3 -- Huayu Automotive Systems plans to acquire the 30 percent of Yanfeng Automotive Interior Systems it does not already own for USD379 million as it looks to assert even greater control over the target.
Huayu's wholly owned subsidiary Yanfeng Automotive Trim Systems agreed on Jan. 31 to buy the shares from Adient's unit in Hong Kong, Huayu said yesterday.
Shares in Huayu [SHA:600741] finished today 4.2 percent lower at CNY25.58 (USD3.65), still beating the Shanghai benchmark which wound up 7.7 percent lower, a result of the rampant novel coronavirus that originated in Wuhan. Today was the first trading day since markets closed in China for the Chinese New Year holiday on Jan. 23.
The acquisition will allow Huayu to independently develop its automotive interiors business worldwide and globalize its units in other segments, the firm said.
Adient, formerly Johnson Controls, set up the target after restructuring in 2015. The subsidiary produces automotive trim systems for the world's biggest carmakers, including Volkswagen, Daimler and General Motors, and also produces for Chinese manufacturers SAIC, Geely, BAIC and BYD.
Editor: James Boynton