Chinese automaker FAW Group considers buying stake in Didi Global – Bloomberg News

(Reuters) -China’s FAW Group is considering acquiring a significant stake in Didi Global Inc, Bloomberg News reported on Friday, days after the ride-hailing giant received shareholders’ nod to delist from the U.S. in an attempt to appease Chinese regulators.

The state-owned automaker has reached out to Didi’s top executives and expressed its interest in becoming a major shareholder in the firm, the report https://bloom.bg/38n7Gtm said, citing sources.

U.S.-listed shares of Didi were up about 9.2% at $2.02 during early premarket hours.

Didi has struggled to bring its business back to normal after angering Chinese regulators by pushing ahead with its $4.4 billion New York listing in June last year despite being asked to put it on hold while officials reviewed its data practice.

FAW has pledged to help Didi resolve issues related to data security, paving the way for a Hong Kong listing, the Bloomberg report added.

FAW and Didi did not immediately respond to Reuters’ requests for comment.

(Reporting by Ann Maria Shibu and Shubham Kalia in Bengaluru; Editing by Rashmi Aich and Krishna Chandra Eluri)

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