Beijing Automotive Industry Holdings Co Ltd, China's fifth-largest automaker by sales, will acquire a minority stake in Koenigsegg Group AB, a consortium led by Swedish supercar manufacturer Koenigsegg, according to a memorandum of understanding signed by the two companies.
The stake sale is expected to help fund the Swedish firm's bid to take control of Saab, which is currently owned by U.S.-based General Motors. In addition, the Chinese auto maker will help the Swedish company seek new growth opportunities by expanding in the Chinese market.
The deal is estimated to be concluded this year. However, no financial details of the MOU were disclosed.
BAIC, which does not have its own car brand so far, has been very active in seeking overseas merger & acquisition opportunities. Earlier this year, the Beijing-based automaker made a bid to buy General Motor's Opel unit. However, the two sides failed to reach an agreement on the intellectual property right issue, according to the Chinese company.
