GAC expands with minibus buyout

Beijing - The first-ever purchase of a private carmaker by a State-owned auto group last month saw Guangzhou Automobile Group Co (GAC), China's sixth-largest auto producer by sales, acquire a small minibus manufacturer in Zhejiang province, the latest consolidation move in the country's fragmented auto industry.

According to the agreement signed on April 26, GAC and Zhejiang Gonow Auto Co will set up a joint venture - Guangqi Gonow - in which GAC holds a 51 percent stake and Gonow took a 49 percent share by offering its auto assets.

Other financial details of the deal were not released.