Chinese chauffeured car service provider UCAR has entered into an agreement to acquire 67 per cent interest in auto parts manufacturer Beijing Borgward Automobile in a 4.1 billion yuan ($610 million) cash deal.
The shares will be sold by Changsheng Industrial (Xiamen) Enterprise Management Consulting, which had earlier purchased the stake from Beiqi Foton Motor for nearly 4 billion yuan.
UCAR said, in a regulatory filing, that the acquisition will further upgrade its automobile value chain to provide comprehensive services within the industry. It will integrate with Beijing Borgward’s resources to co-create a new retail model through separating production and sales, and redefining new retail sales channels.
In 2014, Chinese car-maker Beiqi Foton acquired German brand Borgward, which was closed in 1961, and started Beijing Borgward to produce cars locally. It was reported that Beiqi Foton spent $5.8 million on the acquisition.
UCAR, the Warburg Pincus-backed chauffeured car service firm, has shown an increasing interest in car manufacturing firms.
In June 2017, it was reported that UCAR established a 10-billion-yuan ($1.5-billion) industry fund. The fund led the 2.2 billion yuan investment in electric car startup Xpeng Motors.
Last year, its rental service arm CAR Inc became the largest shareholder in FDG Electric Vehicles.
UCAR has raised some $2.4 billion in equity funding to date. Warburg Pincus led its Series B financing round, while Alibaba led the Series C rounds. Its other investors include PICC Asset Management, UnionPay, CITIC Securities and Legend Capital.