Guangzhou Automobile Group plans to acquire 50% equity of FAW Toyota, and merge North and South Toyota to accelerate production

Guangzhou Automobile Group disclosed a major asset restructuring plan on the evening of September 28th, planning to issue shares to FAW Group at a price of 5.75 yuan per share, acquire its 50% stake in FAW Toyota, and raise matching funds. After the completion of the transaction, FAW Group will become the second largest shareholder of GAC Group, with no change in the actual controller, and will not constitute a restructuring and listing. As of 2025, FAW Toyota and GAC Toyota jointly hold a market share of 17.03% in the joint venture passenger car market. Affected by the pressure of industry transformation, GAC Group will continue to suffer losses in 2025 and the first half of 2026, and FAW Group's sales will also significantly decline. This transaction focuses on joint venture business collaboration, aiming to integrate research and development, supply chain, and production base resources to enhance economies of scale. At present, the audit evaluation has not been completed, and the transaction still requires multiple approval procedures.