Deals

China's Biggest Car Dealer in Talks to Buy Stake in Baoxin

Baoxin shares surge in Hong Kong trading after announcement
More mergers and acquisitions seen among dealers, analyst says

Visitors walk among BMW AG vehicles at Auto Shanghai 2015.
Photographer: Tomohiro Ohsumi/Bloomberg

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By Bloomberg News

September 15, 2015 at 11:48 AM UTC

Updated on

September 16, 2015 at 9:19 AM UTC

This article is for subscribers only.

China Grand Automotive Services Co., the country’s biggest publicly traded car dealership group, said it is in preliminary talks to buy the largest domestic distributor of BMW AG vehicles, as a sales slowdown pushes more retailers to merge or be acquired.

Baoxin Auto Group Ltd. surged 36 percent to HK$3.51 in Hong Kong, the biggest gain on record, after China Grand Auto said it will pay a refundable HK$50 million ($6.45 million) deposit. China Grand Auto’s shares remain suspended in Shanghai.