XPeng acquires competitor in multimillion-dollar deal

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【Summary】Chinese electric car giant XPeng plans to acquire the EV subsidiary of ride-hailing platform Didi for over $740 million, while also announcing the launch of a new brand of vehicles. The deal allows XPeng to eliminate a potential competitor and gain access to advanced technology. Markets responded positively, with XPeng shares rising by almost 13%.

FutureCar Staff Aug 28, 2023 11:17 PM PT

XPeng acquires competitor in multimillion-dollar deal

Chinese electric car manufacturer XPeng announced yesterday that it will acquire the electric vehicle subsidiary of ride-hailing platform Didi for over USD 740 million. This acquisition will also pave the way for XPeng to launch a new brand of vehicles.

XPeng, founded in Guangdong province in 2015, is among the many Chinese startups that have emerged in recent years to capitalize on the growing demand for electric vehicles in the country's largest auto market.

Didi, China's leading car-hailing app, also has a subsidiary dedicated to designing electric vehicles. In a filing with the Hong Kong Stock Exchange, XPeng revealed that it has reached an agreement with Didi to acquire this subsidiary for USD 744 million.

In addition to the acquisition, XPeng and Didi will collaborate on the launch of a new brand of electric vehicles in the coming year.

The market has responded positively to this deal, as it allows XPeng to eliminate a potential competitor and gain access to advanced technology. As a result, XPeng shares experienced an increase of nearly 13% during yesterday morning's trading session.