Multinational automaker Stellantis announced an agreement with Dongfeng Motor on Wednesday that involves the repurchase of €934 million in shares from the Chinese automaker.
Terms
According to the press release, Stellantis will buy back 50 million common shares from the China-owned automaker. Notably, that amount represents 1.58% of its share capital pre-cancellation, totaling €934 million.
In hindsight, the two parties agreed on July 15 last year on the share repurchase framework. Meanwhile, the common share purchase from Dongfeng occurred with the authority given by the multinational company’s general meeting last April 13.
“Per the pre-agreed terms of the share repurchase framework, pricing was set at the five-day average closing price of Stellantis shares on Euronext Milan for the period ending immediately prior to the date on which Dongfeng submitted an offer (which was on November 21, 2023).”
Stellantis
Dongfeng will reportedly retain its 49.2 million common shares, indicating Stellantis’ share capital post-cancellation of 1.58%. Nonetheless, Stellantis assured that the share repurchase will not affect its €1.5 billion open-market share repurchase program, which will supposedly conclude by the end of the year.
Stellantis partners with China’s Leapmotor
Apart from Dongfeng, Stellantis has also sought collaborations with other established Chinese players. According to Teslarati, the automaker also partnered with China’s Leapmotor in October as it seeks to boost its electric vehicle sales and delivery figures across the world.
As part of the partnership, Stellantis allocated €1.5 billion to Leapmotor. In return, Leapmotor grands the Franco-Italican-American brand a 20% stake in its company.
Stellantis to source batteries from CATL
Stellantis also recently partnered with Chinese battery giant CATL, which aims to ensure a sufficient battery supply. The partnership will commit CATL to supply Stellantis with its lithium-iron-phosphate (LFP) battery cell. These batteries will support Stellantis’ EV production, advancing its position in the rapidly growing industry.
“We are very pleased to elevate our cooperation with Stellantis to a new level. With Stellantis’ time-honored expertise in car manufacturing and CATL’s advanced battery technology, we believe the partnership will be a decisive step on both parties’ journey towards carbon neutrality goals.”
Robin Zeng, CATL Chairman and General Manager
All these efforts signify Stellantis’ determination to stay relevant and competitive in the transitioning automotive industry. It has set ambitious targets under the Dare Forward 2030 strategy, including cutting C02 emissions by 50% to reach carbon neutrality by 2038. It also aims to have BEVs account for its new vehicle sales in Europe and 50% in the US by the end of the decade.
