Exclusive: China’s FAW considers acquiring BMW partner Brilliance in $7.2 billion deal – sources

FAW Group is looking at acquiring Brilliance China Automotive Holdings Ltd, BMW’s main Chinese partner, in deals that may cost it some $7.2 billion and then take it private, two people with direct knowledge of the matter told Reuters.

Brilliance shares soared as much as 25.6% to HK$7.99 following the news.

The potential acquisition by state-owned FAW, China’s No. 2 automaker, comes at a time when Brilliance’s top shareholder Huachen Automotive Group is on the brink of bankruptcy, having defaulted on 6.5 billion yuan ($1 billion) in debt obligations late last year.