China: Zongshen to become majority shareholder in Loncin
According to recent news from the Chinese motorcycle market, Zongshen Power is set to acquire Loncin General. While the acquisition is still pending finalization, it will allow Zonshen New Manufacturing to become the majority shareholder in Loncin General.
These companies are two of the major players in the Chinese motorcycle industry in Chongqing. Zongshen is the top seller with its flagship brand, Cyclone. Loncin is the second biggest seller in China, and it owns Voge. The combined company could impact global projects and partnerships going forward.
According to the Mega China Motor website, Zongshen will own 24.55% of Loncin General’s total capital, which involves a transaction amounting to 3.346 billion yuan, according to the announcement on July 2.
The merger is expected to benefit both Chinese manufacturers, as they aim to sustain their strong position in the domestic market and produce some global products.
