Xpeng Soars After Buying Didi Unit to Consolidate Market
- EV maker buys Didi smart-car unit in $744 million stock deal
- Didi, Xpeng to launch mass-market EV brand in new partnership
Xpeng Inc.’s shares soared after it agreed to buy Didi Global Inc.’s smart-car development arm in a deal that both eliminates a potential competitor in the crowded electric-vehicle market and gives it a tech-savvy partner in a new venture.
The HK$5.84 billion ($744 million) all-stock deal will see Didi emerge with a 3.25% stake in Xpeng, according to an exchange filing Monday. Xpeng shares surged more than 16% in Hong Kong trading before paring gains to close 11% higher. Its American depositary receipts gained 5% by 4:27 a.m. in New York.
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Xpeng Soars After Buying Didi Unit to Consolidate Market