Guangzhou Automobile plans to acquire 50% stake in FAW Toyota (updated)

TOYOTA MOTOR

28/09/2026 15:38

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BEIJING, Sept 28 (Reuters) - Guangzhou Automobile Group 601238.SS plans to acquire a 50% stake in FAW Toyota from a unit of state-owned automaker FAW Group through a share issue, GAC said in a Shanghai Stock Exchange filing on Monday. 
GAC said the new A-share issuance price was set at 5.75 yuan ($0.8569) per share and it plans to raise supporting funds.
The transaction value has not yet been determined pending the completion of audit and asset valuation work.
China, the world's largest auto market, has vast overcapacity and more than 100 competing car brands.
Toyota's strategy of separate partnerships with FAW and GAC in China is becoming less compelling as market growth slows, competition intensifies and the EV shift squeezes profits.
The deal is one of the key projects to deepen strategic cooperation between FAW Group and GAC, the filing said.
GAC said that the FAW Group unit will become its second-largest shareholder and play a significant strategic role.
($1 = 6.7103 Chinese yuan renminbi)

(Reporting by Shi Bu, Xiuhao Chen and Liz Lee; editing by Andrew Heavens and Alexander Smith)
((Shi.Bu@thomsonreuters.com;))