Photo: Gree Electric Appliances

China’s Gree Electric Appliances denied that it struck a merger and acquisition deal with FAW Xiali, Yicai.com reported, citing an official announcement on Monday.

Stocks of FAW Xiali were suspended for trading on September 8 due to “major and unstable issues involving the company.” It was expected to disclose the relevant situation and resume trading within 10 trading days.

On Monday, Gree Electric Appliances announced that it would disclose relevant matters through designated media. But later in the evening, it said it did not reach any agreement in terms of mergers and acquisitions with FAW Xiali.

An unnamed auto industry analyst said that FAW Xiali’s business situation has always been unsatisfactory, and Gree Electric Appliances could have found a better potential partner.

While competitors of Gree Electric Appliances and other home appliance giants are expanding overseas through mergers and acquisitions, Gree Electric Appliances went a complete different direction — it is trying to enter the new energy vehicle industry through auto air conditioning, the report added.

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