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

SHANGHAI (Reuters) -A enterprise run by the founding father of Chinese language automaker Zhejiang Geely Holding plans to amass an 79% stake in Chinese language smartphone maker Meizu, an announcement revealed by China’s anti-monopoly regulator confirmed on Monday.

The State Administration of Market Regulation mentioned that Hubei Xingji Shidai Expertise Co Ltd had agreed to buy the stake from two of Meizu’s shareholders. It didn’t give a worth for the deal.

Xingji Shidai and Meizu each mentioned in comparable statements that that they had signed a strategic funding settlement however the deal was nonetheless being reviewed by regulators and particulars have been nonetheless being negotiated.

Geely mentioned in an announcement to a Reuters question concerning the deal that there was a “shut connection in applied sciences” between car cockpits and smartphone software program.

Xingji Shidai was launched by Geely’s chairman Eric Li final yr as a part of a push into premium smartphones, making the Volvo proprietor the primary established carmaker to enter the extremely aggressive sector. Li owns a 55% stake in Xingji Shidai.

Reuters reported in September that the enterprise goals to launch its first smartphone by 2023 and promote 3 million models in its first yr, citing an inside memo.

The memo additionally mentioned that the mission will probably be funded with a ten billion yuan ($1.55 billion) funding and is focusing on income of 10 billion yuan in its first yr.

Established in 2003, Meizu was as soon as considered one of China’s best-known smartphone manufacturers however it has in recent times misplaced floor to native rivals like Xiaomi, Oppo and Vivo.

(Reporting by Brenda Goh; Enhancing by David Evans and Jan Harvey)