Weichai Power, one of China's largest makers of engines for heavy-duty trucks, will take control of Torch Automobile Group, the truck production unit of collapsed D'Long Group.
In a statement published in a mainland newspaper, Shenzhen-listed Torch said Weichai had agreed to buy a 28.12 per cent stake in the truck maker from D'Long and two D'Long subsidiaries for 1.02 billion yuan.
The purchase would make Weichai Torch's largest shareholder.
The purchase price includes 622.29 million yuan in cash for the equity and the assumption of 401.09 million yuan of Torch's liabilities.
Trading in Weichai's shares was suspended yesterday pending announcement of the deal.
According to an Everbright Securities research report, Weichai beat Wanxiang Group's 820 million yuan bid for Torch.
