Chang'an is third largest automaker

China's Chang'an Automobile Group has become the country's third-largest vehicle manufacturer after taking over two automobile manufacturing arms of aircraft maker, Aviation Industry Corporation of China (AVIC) - the biggest acquisition in years in what is currently the world's key automobile market.

The merger deal, announced yesterday, would be made by exchanging stock for assets. The financial details have not been disclosed.

According to the agreement signed yesterday in Beijing, Chang'an Automobile Group, the parent firm of Ford's Chinese partner, Chongqing Chang'an Automobile Co Ltd, will acquire Harbin Hafei Automobile Industry Group and Jiangxi Changhe Automobile from AVIC.