In a recent turn of events, electric-vehicle company Xpeng Inc. witnessed a surge in its share prices following the agreement to acquire the smart-car development unit of Didi Global Inc.. This significant move not only eliminates a potential contender in the heavily crowded electric-vehicle market but also brings on board a technologically advanced partner for upcoming ventures.
According to Monday’s exchange filing, the deal, worth around HK$5.84 billion ($744 million), will result in Didi holding a 3.25% stake in Xpeng. Clearly reflecting the market’s positive reception, Xpeng’s shares surged over 16% in Hong Kong trading, though later settling at an 11% increase. Xpeng’s American depositary receipts also observed a 5% hike by 4:27 a.m. in New York.
The outcome of this acquisition is highly anticipated as Xpeng consolidates its stance in the competitive electric-vehicle market. However, the specifics of Xpeng’s future plans post-acquisition remain undisclosed as of yet. For further details on the deal, you may refer to this Bloomberg Law article.