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Guangzhou Auto in talks to buy controlling stake in Changfeng Motors

Beijing, 140808. Guangzhou Automobile Industry Group Co Ltd (GAIG), a Chinese joint venture partner of Japan's Honda Motor Co and Toyota Motor Corp, is expected to acquire a controlling stake in Hunan Changfeng Motors Co (SHA 600991), China Business News reported.

Citing unnamed sources, the newspaper said talks regarding the acquisition are nearing an end and that a deal is expected to be announced before the fourth quarter of this year.

No financial details were given.

Officials at both firms are not immediately available for comment.

Changfeng, in which Mitsubishi currently owns about 15 pct stake, builds Mitsubishi Pajero sports-utility vehicles (SUVs) as well as its own-brand Liebao SUVs in south China's Changsha city.

Source: Forbes.com.