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在线翻译:
szdaily -> Markets
Great Wall Motor reiterates interest in FCA
    2017-August-24  08:53    Shenzhen Daily

CARMAKER Great Wall Motor Co. reiterated its interest in Fiat Chrysler Automobiles (FCA) on Tuesday, but said it had not held talks or signed a deal with executives at the Italian-American automaker.

Great Wall, China’s largest sport utility vehicle (SUV) manufacturer, made a direct overture to Fiat Chrysler on Monday, with an official saying the company was interested in all or part of FCA, owner of the Jeep and Ram truck brands.

Automotive News first reported the news, quoting Great Wall Motor president Wang Fengying as saying she planned to contact FCA to discuss acquiring the Jeep brand specifically.

Those comments sent FCA shares higher but also raised questions over the ability of China’s seventh-largest automaker by sales to buy larger Western rival FCA, or even Jeep, which some analysts value at as much as one-and-a-half times FCA.

Great Wall sought to dampen speculation Tuesday. It confirmed it had studied Fiat Chrysler, but said there was “no concrete progress so far” and “substantial uncertainty” over whether it would eventually bid.

“The firm has not built any relationship with the directors of FCA nor has the company entered into any discussion or signed any agreements with any officer of FCA so far,” the Hong Kong and Shanghai-listed firm said. It did not give further detail.

Great Wall, which was early to spot China’s love of SUVs, had revenue of US$14.8 billion last year and sold 1.07 million vehicles — but that compares with FCA’s 2016 revenue of 111 billion euros (US$130.6 billion).

Analysts said Great Wall would need to raise both debt and equity to complete any deal, meaning its chairman Wei Jianjun could lose majority control.

One possible scenario, according to analysts at Jefferies, would see Wei keeping a roughly 30 percent stake, while Great Wall would raise US$10-US$14 billion in debt and US$10 billion in equity — hefty for a group currently worth just US$16 billion. (SD-Agencies)

 

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