May 27 (UPI) — Volkswagen is close to striking two deals for China’s electric car industry, according tomedia reports. Volkswagen is ready to buy a 50 percent stake in the parent company of its electric car partner, Jianghuai Automobile, for at least 3.5 billion yuan ($490 million), according to people familiar with the matter.
Volkswagen will also become the largest shareholder in electric car battery maker Guoxuan Gaoke. Media said the deals could be announced as early as Friday.
Media reported last year that Volkswagen was considering the deals to better compete in China.
Guoxuan Gaoke is still suspended today, while Jianghuai Automobile rose and stopped trading at 7.62 yuan today, with a total market value of about 14.427 billion yuan.