China ZhengTong Auto buys rival dealer for $860 million

China’s second-biggest BMW dealer has agreed to buy rival Exactwin, which sells Jaguar, Land Rover and Volvo brands.

<div style="text-align: left;"> ZhengTong is China's second-biggest BMW dealer </div>

By Nick Ferguson

August 30, 2011

Hubei-based China ZhengTong Auto Services, the second-biggest BMW dealership on the mainland, is set to pay Rmb5.5 billion $860 million for Exactwin, a rival dealer that specialises in selling cars made by Jaguar, Land Rover and Volvo.

The company’s shares were suspended from trading in Hong Kong on August 23, pending an announcement, and resumed yesterday after the company revealed its conditional agreement with Exactwin to buy its entire issued share capital.

Exactwin has automobile dealership outlets spread over Beijing, Tianjin, Fujian, Hunan, Guangdong and Hainan. In total, it operates 31 dealerships authorised by manufacturers, with an average contractual agreement that ranges from one to three...

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