Geely founder’s venture buys majority stake in Chinese smartphone maker Meizu

SHANGHAI (Reuters) -A undertaking operate by the founder of Chinese automaker Zhejiang Geely Keeping strategies to acquire an 79% stake in Chinese smartphone maker Meizu, a statement released by China’s anti-monopoly regulator confirmed on Monday.

The State Administration of Marketplace Regulation explained that Hubei Xingji Shidai Technological know-how Co Ltd experienced agreed to acquire the stake from two of Meizu’s shareholders. It did not give a benefit for the deal.

Xingji Shidai and Meizu both claimed in identical statements that they had signed a strategic financial commitment arrangement but the offer was continue to being reviewed by regulators and facts were continue to remaining negotiated.

Geely reported in a statement to a Reuters question about the offer that there was a “shut link in technologies” between car cockpits and smartphone software.

Xingji Shidai was launched by Geely’s chairman Eric Li last 12 months as aspect of a drive into quality smartphones, creating the Volvo operator the very first proven carmaker to enter the extremely aggressive sector. Li owns a 55% stake in Xingji Shidai.

Reuters claimed in September that the enterprise aims to launch its to start with smartphone by 2023 and offer 3 million units in its to start with yr, citing an interior memo.

The memo also explained that the job will be funded with a 10 billion yuan ($1.55 billion) expense and is targeting profits of 10 billion yuan in its to start with 12 months.

Founded in 2003, Meizu was once a single of China’s very best-identified smartphone manufacturers but it has in new yrs dropped floor to area rivals like Xiaomi, Oppo and Vivo.

(Reporting by Brenda Goh Modifying by David Evans and Jan Harvey)