China's Great Wall confirms interest in bidding for Fiat Chrysler

Cornelia Mascio
Agosto 23, 2017

According to a Reuters report published on August 21, Great Wall Motor, a Chinese auto giant has confirmed its interest in acquiring Fiat Chrysler Automobiles.

Great Wall President Wang Fengying has reportedly reached out to FCA to see if a deal can be done.

Representatives from FCA were said to have met with counterparts from Great Wall in China this month, but a statement from FCA denies any meeting took place.

Trading in Great Wall Motor's Shanghai-listed shares will resume on Wednesday, after it was suspended on the company's request. Great Wall's spokeswoman did not confirm whether the companies had made any contact yet but she confirmed the intention to make an offer.

Bill Russo, managing director of Gao Feng Advisory Group, said he believes Great Wall Motor is interested in just buying Jeep rather than buying all of FCA and inheriting its sizeable liabilities.

Rumours of a then-unnamed Chinese buyer surfaced last week, but any deal was expected to include Chrysler, Dodge, RAM and Fiat - along with Jeep. Fiat Chrysler stock dipped on the statement on Tuesday.

Great Wall is known for its sport-utility vehicles, which are popular in China, so a deal would be "quite complementary" for the company, the analyst said.

"They could get a pretty good price for" Jeep, Russo said.

Sweden's Volvo was acquired by China's Geely in 2010 and has enjoyed strong sales growth since, with the Chinese market accounting for 20 percent.

Great Wall's "interest in purchasing FCA highly fits our professional development path and strategy of globalisation", the spokeswoman said.

"We are interested in (FCA)", an official at Great Wall Motor's press relations department, who declined to give his name, told Reuters by telephone.

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