Is Jeep the Next Target after Volvo? Chinese Car Firms May Buy Fiat Chrysler
Jin Yuanjia
DATE:  Aug 15 2017
/ SOURCE:  Yicai
Is Jeep the Next Target after Volvo? Chinese Car Firms May Buy Fiat Chrysler Is Jeep the Next Target after Volvo? Chinese Car Firms May Buy Fiat Chrysler

(Yicai Global) Aug. 15 -- Indications are that, after Geely Automobile Holdings Ltd, Chinese car firms may once again start to buy abroad.

Earlier this month, a well-known Chinese carmaker issued at least one tender offer to buy Fiat Chrysler Automobiles NV [BIT:FCA] (FCA). The offer was slightly higher than the company's current market price, but was declined because it was not high enough, well-known automotive media Automotive News reported.  

Other large Chinese carmakers are also interested in buying FCA, and last week met with representatives of American Retail Group Inc. to discuss potential acquisitions, separate sources with Automotive News also revealed. FCA executives were confirmed as having traveled to China to visit Great Wall Motors Co. [HK:2333]. A Chinese delegation also visited FCA's Michigan headquarters last week, other sources said.

Which Chinese company will seek the acquisition remains unclear, however, with different sources pointing to different firms. Dongfeng Motor Co. [HK:0489], Great Wall, Geely Automobile Holdings Ltd. [HK:0175], and Guangzhou Automobile Group Co. [HK:2238] (GAC Group) -- FCA's current joint venture partner in China -- are all the possible buyer. Affected by this news, FCA shares closed up 8.5 percent on Monday at USD12.60 per share, the biggest one-day gain in nearly four months.

No matter which firm will buy, if the deal closes, it will be another big overseas acquisition by a Chinese car firm after Geely's USD1.8 billion grab of Volvo Cars. Sources said the buy-out will involve FCA's Chrysler, Dodge and Fiat, as well as the famous Jeep brand, but will not include the Martha Lahti and Alfa Romeo brands.

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Keywords:   FCA,Auto Manufacturers,Overseas Acquisition