DiDi Discusses Stake Acquisition In Sinomach Automobile's EV Division For $150M

DiDi Global Inc DIDI discussed acquiring a third of the EV unit of state-backed Sinomach Automobile, Reuters reports.
Recent reports suggested possible ease in the regulatory crackdown on the ride-hailing company.
Didi was amid advanced discussions to acquire shares in small-sized automaker Sinomach Zhijun Automobile from minority shareholders, costing over 1 billion yuan ($150 million). Didi looks to inject fresh capital into the firm.
Didi aimed to become the second-biggest shareholder of the EV maker after Sinomach Automobile.
Also Read: DiDi Faces Double Whammy Of US, China Investigations
Sinomach Automobile owned a combined 67% of Sinomach Zhijun.
Didi quietly pushed ahead with a car-making project, code-named "Da Vinci," dedicating 2,000 people to it.
Didi looked to forge a partnership with an automaker with an EV production license to make such vehicles in China.
China's regulatory crackdown compelled Didi to pursue a U.S. delisting.
Price Action: DIDI shares closed higher by 4.35% at $2.40 on Tuesday.