GAC plans share issue to acquire FAW's 50% stake in Toyota JV

GAC Group plans to issue shares to acquire China FAW’s 50% stake in FAW Toyota, bringing Toyota’s northern and southern China joint ventures under GAC’s umbrella. The proposed restructuring is intended to coordinate research and development, production, supply chains and sales, reducing duplicated investment as competition intensifies and China’s auto industry faces pressure to consolidate. The transaction’s final value and share count remain undetermined pending audit and valuation work; if completed, FAW is expected to become GAC’s second-largest shareholder. Together, FAW Toyota and GAC Toyota sold about 1.58 million vehicles in 2025, giving the combined operation greater scale, though both ventures have faced more recent sales declines.