Date: August 28, 2023. — Xpeng has acquired Didi’s Smart EV assets for a sum of $744 million. This acquisition marks a step forward for Xpeng, which aims to expand its footprint in the competitive EV landscape.
The acquisition covers Didi’s EV business, including IP, technology, manufacturing, and R&D units, comprising diverse elements of their operations. Through the integration of these assets, Xpeng seeks to enhance its EV offerings, streamline production processes, and accelerate innovation.
XPeng has acquired Didi’s smart auto business for 5.835 billion HKD as per the partnership agreement, totaling US$744 million. Furthermore, this strategic move entails XPeng issuing Class A ordinary shares at a price of HK$64.03 per share to Didi. Consequently, this is equivalent to 3.25% of the company’s total outstanding shares.
XPeng experienced a significant surge in its Hong Kong-listed shares, soaring by 14% to 74.45 Hong Kong dollars (US$9.49). This surge follows its announcement of a strategic partnership with ride-hailing giant DiDi Global. Moreover, this increase adds to its already impressive year-to-date gains of 94%.
The XPeng and DiDi alliance aims to speed up smart EV adoption and related tech in the mass market. In line with this vision, the companies intend to introduce an A-class smart EV model under a new brand by 2024, currently codenamed “MONA.” Utilizing DiDi’s extensive mobility ecosystem, which covers a nationwide shared mobility market, moreover, this new brand will distinctly position itself apart from XPeng’s current primary brand. Playing a crucial role, it enables wider access to sought-after Smart EVs, priced affordably at around US$20,575, for the masses. XPeng detailed this information in an official press release.