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China's Dongfeng and Changan may merge. Dongfeng has announced an upcoming restructuring that could change the structure of the majority shareholder. At the same time, Changan, which, like Dongfeng, is partly owned by the Chinese government, has also announced a quick reorganization, which has given rise to rumors about a merger of the two companies, Autogeek reports. Dongfeng shares jumped 85,8% in trading, while Changan's jumped 4,8%.
Dongfeng and Changan do not mention each other in their restructuring statements, so the information about their merger is still unofficial. At the same time, the Chinese government has previously called on automakers to cooperate to increase competitiveness, and Dongfeng and Changan are likely to be the first to take this step. Local media say the main purpose of the merger is the companies' desire to unify supply chains and technologies, as well as the desire to consolidate resources.
According to Cnevpost, if Dongfeng and Changan join forces, it will become the largest alliance in China - annual sales will be approximately 4,58 million cars, which is more than BYD sells. In the global market, Dongfeng-Changan claims the fifth largest place among other automobile groups.
It is expected that in the event of a single company being established, someone from Dongfeng will become the chairman of the board of directors and CEO.
