China's Xpeng to acquire Didi's smart EV unit in deal worth up to $744 million
Xpeng said it will acquire ride-hailing giant Didi's smart electric vehicle unit and the two companies will form a strategic partnership.
Xpeng's shares surged around 16% in early Monday trade.
As part of the deal, which could be worth as much as $744 million, Xpeng will launch an A-class model next year under a new brand, currently called MONA, aiming to expand in the mass-market segment.
«Project 'MONA' will accelerate the Company's production and sales growth and help achieve greater economies of scale,» Xpeng said in a statement.
Didi will support the launch by «providing access to its mobility market» and the two companies will explore strategic cooperation in a number of areas, including marketing, financial and insurance services.
Didi will acquire around 3.25% of Xpeng shares under the deal, which could increase depending on whether production and sales targets are fulfilled.
The likely maximum deal value of $744 million includes potential milestone payments.
