JAC Motors stated on Thursday it had not held conversations with Volkswagen AG, after Reuters reported that the German automaker was interested in taking a stake in its Chinese electric vehicle joint venture partner.
“The company and Volkswagen have not carried out formal business discussions on the matters mentioned in the news reports nor does it have any plans for an equity acquisition,” JAC stated in a stock exchange statement.
Reuters reported on Wednesday that Volkswagen was examining the purchase of a large stake in JAC and had hired Goldman Sachs to advise on the strategy.
Three sources informed Reuters that Volkswagen’s strategies were at an early stage. Two of them stated it will seek to purchase shares from JAC’s major shareholders. Refinitiv data reveals state-backed firms own over 40 percent of JAC.