Credit Agricole in talks to invest in Guangzhou Auto unit
The transaction will give the leasing business a valuation of about US$600 million
CREDIT Agricole is in advanced talks to invest in the financial leasing unit of Guangzhou Automobile (GAC), sources said, as it seeks to tap China’s electric-vehicle market – the biggest in the world.
The French lender’s consumer finance unit, Credit Agricole Personal Finance & Mobility, plans to buy about 50 per cent of GAC’s leasing unit with a capital increase, sources noted, asking not to be identified because the discussions are private.
The transaction would give the leasing business a valuation of about US$600 million after completion, the sources said.
The companies are working out the details of a partnership agreement that could be announced as soon as next month, pending regulatory approvals in China. No final decisions have been made, they added.
A representative for Credit Agricole declined to comment. GAC did not immediately respond to requests for comment.
Credit Agricole Personal Finance & Mobility and GAC have had a 50:50 joint venture since 2010, known as GAC-Sofinco Automobile Finance, which provides services such as credit for car purchases mostly in China. BLOOMBERG
