Chinese Electric Vehicle Company Xbang to Acquire Didi’s Smart Electric Vehicle Division

Rise in Xbang’s Shares After $744 Million Deal

Chinese electric vehicle company Xbang said it will acquire passenger transportation giant Didi’s smart electric vehicle division in a $744 million deal, and the two companies will form a strategic partnership.

Shares of Xbang rose about 13% in trading on Monday.

As part of the deal, X-Bang will launch a rebadged Series 1 sedan next year, now called the Mona, with the goal of expanding into the mainstream segment, with the car priced at $20,000.

Deal in the Context of China’s Electric Vehicle Industry

The deal comes amid slowing demand and overcapacity in China’s electric vehicle industry, which has made it difficult for newcomers like Didi to enter the market.

Didi said it will support the launch of the project by “providing access to the mobility market” and the two companies will explore strategic collaboration in a number of areas, including marketing, financial and insurance services.

Didi will acquire about 3.25 percent of Xbang’s shares as part of the deal, and that percentage could increase depending on the achievement of production and sales targets.