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. This deal will allow XPeng to eliminate a potential competitor and gain access to advanced technology. Additionally, XPeng will collaborate with Didi to launch a new brand of electric vehicles next year. The market responded positively to this news, with XPeng shares rising nearly 13%.

FutureCar Staff Aug 30, 2023 11:34 PM PT

XPeng acquires competitor in multimillion-dollar deal

Chinese electric car company XPeng announced on Thursday that it will acquire the electric vehicle (EV) subsidiary of ride-hailing platform Didi for over USD 740 million. This move comes as XPeng aims to expand its presence in the booming electric vehicle market in China. XPeng, founded in 2015 in Guangdong province, is one of the many Chinese startups that have emerged in recent years to capitalize on the growing demand for electric vehicles in the country.

Didi, China's leading car-hailing app, not only operates as a ride-hailing platform but also has a subsidiary dedicated to designing electric vehicles. In a filing to the Hong Kong Stock Exchange, XPeng announced that it has reached an agreement with Didi to acquire the subsidiary for USD 744 million. As part of the deal, XPeng will also collaborate with Didi to launch a new brand of electric vehicles in the coming year.

The market has responded positively to the acquisition, as it allows XPeng to eliminate a potential competitor and gain access to advanced technology. Following the announcement, XPeng shares surged by nearly 13% in morning trading.