Domestic auto maker Zhejiang Geely Holding Group said that it plans to acquire Zhejiang Zhongyu Automobile, a maker of commercial vehicles, the Wall Street Journal reported. Terms of the deal were not released. Separately, Geely said it would also invest US$51.3 million to begin building a crash-test center. The acquisition would fit into Beijing’s overall drive for consolidation within the auto sector, and would give Geely a stronger presence in the commercial vehicle market. Helped by government stimulus and a reduction on the purchase tax of small-engined vehicles, commercial vehicles enjoyed strong growth in China last year.
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