General Motors and SAIC Motor (600104.SH) are in discussions to reach an agreement on an equity purchase by the Chinese firm as part of the American automaker’s initial public offering, Reuters reported, citing people familiar with the matter. GM is expected to raise approximately US$13 billion through its IPO this month. Sources told Reuters that SAIC, GM’s joint venture partner in China, was seeking a "single-digit" stake in GM, but the size of its investment remains unknown. The discussions also reportedly cover technology sharing and a potential move by SAIC beyond the domestic market. An agreement between SAIC and GM would require Chinese government approval.
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