Zhejiang Geely-Controlled Company to Buy Majority Stake in Alibaba-Owned Smartphone Maker

By Yifan Wang

A company controlled by the president of Zhejiang Geely Holding Group, one of China's largest car makers, has been cleared by authorities to acquire a majority stake in smartphone maker Meizu Technology Co., which is partially owned by Chinese tech giant Alibaba Group Holding Ltd.

The deal, between Geely-controlled Hubei Xingji Shidai Technology Co. and Meizu, has been given the regulatory go-ahead after authorities reviewed it for anti-monopoly compliance, China's top market regulator, the State Administration of Market Regulation, said in a statement Monday.

Hubei Xingji, controlled by Chinese billionaire Li Shufu whose Zhejiang Geely also owns Volvo Car AB, will buy a 79% interest in Meizu from Meizu's founder and a unit of Alibaba, the administration said. After the deal, Alibaba will no longer hold any stake in Meizu.

The deal marks the latest tie-up between car makers and technology companies, as the two sectors grow increasingly close to each other amid the ongoing digitization and automation of vehicles. In early 2021, Zhejiang Geely partnered with Chinese internet and search engine company Baidu Inc. to produce electric cars. In the U.S., tech giants like Alphabet Inc. and Amazon.com Inc. have also been expanding their reach into the auto industry.

Write to Yifan Wang at [e-mail]

(END) Dow Jones Newswires

June 14, 2022 07:07 ET (11:07 GMT)

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