© Reuters. FILE PHOTO: The app logo of Chinese ride-hailing giant Didi is seen reflected on a navigation map displayed on a mobile phone in this illustration photo taken on July 1, 2021. REUTERS/ Florence Lo / Illustration / File Photo
(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 approval from shareholders about canceling the contract with the US in an attempt to appease Chinese regulators.
According to a source from https://bloom.bg/38n7Gtm, the state-owned car manufacturer has contacted Didi’s top executives and expressed interest in becoming a major shareholder of the company. the company.
U.S.-listed Didi shares were up about 9.2% at $2.02 in the early market hours.
Didi has struggled to get its business back to normal after infuriating Chinese regulators by pushing for a $4.4 billion listing in New York last June despite the asked to pause while officials review their data practices.
The FAW has committed to helping Didi resolve issues related to data privacy, paving the way for a listing in Hong Kong, the Bloomberg report added.
FAW and Didi did not immediately respond to Reuters’ request for comment.
