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Joint Statement Regarding Capital Increase Project of Changan Mazda Automobile Co., Ltd.

August 24, 2021 at 12:30 PM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

HIROSHIMA, Japan, Aug 24, 2021 - (JCN Newswire) - Mazda Motor Corporation (Mazda), Chongqing Changan Automobile Co., Ltd. (CA) and China FAW Corporation Limited (FAW), today, have issued the following joint statement.

In response to FAW participating in and winning the bid for a capital increase project implemented by Changan Mazda Automobile Co., Ltd. (CMA), a joint venture between Mazda and CA, on the China Beijing Equity Exchange, the three companies agreed that FAW would invest in CMA. Based on this agreement, FAW will make use of the total 60% share it owns in FAW Mazda Motor Sales Co., Ltd. (FMSC) to purchase the new shares.

Upon completion of the examination procedures by relevant authorities of the Chinese government in accordance with laws and regulations, CMA will become a new joint venture company (new CMA)1 whose shareholders will be Mazda, CA and FAW. Mazda and CA will each own 47.5 percent of shares while FAW will own 5 percent. New CMA will continue to be responsible for the operations of former CMA and other Mazda-related business. FMSC will also continue to be engaged in Mazda brand vehicle business as a joint venture owned by new CMA and Mazda.

With the change in the investment structure, the three companies aim to utilize every strategic and managerial opportunity in the new joint investment company and strive to make its business and management system optimal to adapt to the needs of the expanding Chinese market.

(1) Herein, referred to as new CMA for clarity, but the name of the company will remain CMA.

Source: Mazda

Copyright 2021 JCN Newswire . All rights reserved.

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