Stellantis N.V. STLA reportedly received the Chinese regulator’s approval that will allow the company to build and sell Leapmotor’s electric vehicles outside China.
China’s National Development and Reform Commission (NDRC) has given the nod for the joint venture, reported Reuters, citing two sources familiar with the matter.
Stellantis had announced the joint venture in October 2023 and said it was acquiring a 21% stake in Leapmotor in a $1.6 billion deal.
Under the terms of the agreement, Stellantis would obtain the exclusive rights to build, export, and sell Leapmotor products outside China, per the report.
The report further noted that the approval for the joint venture comes when tensions are running high between China and the European Union amid a probe into whether China’s EV manufacturers benefit from skewed subsidies.
Also Read: Kyndryl Amps Up Tech Collaboration with Stellantis
Price Action: STLA shares are trading higher by 1.81% at $27.28 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Jonathan Weiss on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
