Stellantis to Acquire $1.1 Billion Stake in China’s Zhejiang Leapmotor
Zhejiang Leapmotor to Issue Shares to Stellantis
Chinese electric vehicle (EV) manufacturer Zhejiang Leapmotor Technology has announced its plans to raise HK$8.51 billion ($1.09 billion) through a share issuance to Stellantis NV. The company will offer 194.3 million Hong Kong shares to Stellantis at HK$43.8 per share, representing a 19% premium over its previous closing price of HK$36.80. This move will result in Stellantis owning approximately 21.07% of Zhejiang Leapmotor’s total issued Hong Kong shares.
Joint Venture Formation with Stellantis
In addition to the share issuance, Zhejiang Leapmotor has revealed the establishment of a joint venture with Stellantis, with the latter holding a majority stake of 51%. This collaboration marks a significant milestone for both companies, as they aim to leverage their respective expertise and resources in the EV industry.
The partnership between Zhejiang Leapmotor and Stellantis signifies a strategic move towards sustainable mobility solutions. By combining their strengths, the two companies intend to accelerate the development and adoption of electric vehicles in the global market.
Driving the Future of Electric Vehicles
Zhejiang Leapmotor’s decision to join forces with Stellantis demonstrates its commitment to innovation and growth in the EV sector. With Stellantis’ extensive experience and global presence, Zhejiang Leapmotor gains a valuable partner to expand its market reach and technological capabilities.
As the demand for electric vehicles continues to rise, this collaboration opens up new avenues for both companies to capitalize on the evolving market dynamics. Together, they aim to drive the future of electric mobility and contribute to a greener and more sustainable transportation landscape.
The partnership between Zhejiang Leapmotor and Stellantis exemplifies the ongoing efforts to transition towards cleaner energy sources and reduce carbon emissions. By combining their resources, expertise, and market insights, they strive to play a pivotal role in shaping the future of transportation.