Stellantis appears to be strengthening its ties in China’s automotive industry.
Stellantis recently repurchased €934 million in shares from Chinese auto company Dongfeng as per a pre-existing share repurchase framework. Dongfeng Motors Corporation Ltd. is a state-owned automobile manufacturer headquartered in Wuhan, Hubei. Stellantis repurchases 50 million common shares from DongFeng and plans to cancel them.
“Dongfeng will retain 49.2 million common shares, representing 1.58% of Stellantis’ share capital post-cancellation, and the share repurchase framework agreed between the two parties remains in place with respect to such shares.
“The share repurchase transaction with Dongfeng will not impact Stellantis’ €1.5 billion open-market share repurchase program announced February 22, 2023, which is expected to [be] completed by the end of 2023,” announced Stellantis.
Besides its relationship with Dongfeng, Stellantis has formed partnerships and invested in other Chinese companies. In October, the legacy automaker invested in China-based Leapmotor to expand its global electric vehicle (EV) sales. Stellantis invested €1.5 billion in Leapmotor, acquiring 20% of the Chinese company and becoming a significant shareholder.
Earlier this week, Stellantis signed a lithium-iron-phosphate LFP battery cell agreement with Chinese battery supplier Contemporary Amperex Technology Co (CATL).
“We are very pleased to elevate our cooperation with Stellantis to a new level. With Stellantis’ time-honored expertise in car manufacturing and CATL’s advanced battery technology, we believe the partnership will be a decisive step on both parties’ journey towards carbon neutrality goals,” said Robin Zeng, Chairman and General Manager of CATL.