GAC Moves to Buy FAW's Stake in Their Auto Joint Venture via Share Swap

GAC Group has laid out a plan to acquire FAW Group’s interest in their shared auto joint venture, structuring the transaction as a share-based deal rather than an outright cash purchase.

Under the proposed arrangement, FAW would emerge as GAC’s second-largest shareholder once the transaction closes. Despite the shift in ownership structure, GAC’s ultimate control over the company would remain unchanged, according to the plan.

The move signals a further reshuffling of ties among China’s state-backed automakers. By using equity instead of cash, GAC keeps its balance sheet intact while giving FAW a larger financial stake in its business.

Details of the transaction, including its timing and valuation, were not fully disclosed. The plan still requires the usual corporate and regulatory approvals before it can be completed.