Xpeng Motors acquires Didi’s smart car business for RMB 5.8 billion. He Xiaopeng expresses his feelings about coincidence and opportunity on Weibo

Xpeng Inc. issued an announcement on the Hong Kong Stock Exchange on the morning of August 28, announcing that it had signed a share purchase agreement and a strategic cooperation agreement with Didi Chuxing, agreeing to conditionally acquire Didi's smart car development business assets for a maximum total consideration of HK$5.835 billion and issue consideration shares to Didi. This transaction will enable Xpeng Motors to obtain Didi's technology, talents and resources in the field of smart cars, and form a close cooperative relationship with Didi in the smart travel market.

According to the announcement, Xpeng Motors will acquire Didi's target company and its subsidiaries (hereinafter referred to as the target group) in cash and shares. The group is engaged in several smart car businesses and owns several target business assets. Among them, the cash part is not more than HK$2.335 billion, and the share part is not more than HK$3.5 billion. Xpeng Motors will issue approximately 12.23 million American Depositary Receipts (ADS) to Didi, and each ADS represents two Class A common shares. The transaction is expected to be completed in the fourth quarter of 2023.

The Target Group is currently engaged in a number of smart car businesses, including autonomous driving, battery management, motor control, wireless charging, cloud computing, etc., and owns a number of Target Business assets, including patents, software, hardware, testing equipment, etc. The Target Business is mainly operated by other members of the Seller Group. Pursuant to the terms and conditions of the Share Purchase Agreement, prior to the First Closing, the Seller shall complete the reorganization so that the Target Group will acquire and own all Target Business assets immediately prior to the First Closing.

Xiaopeng Motors said that this acquisition and cooperation will help enhance Xiaopeng Motors' technical strength and market competitiveness in the field of smart cars, and will also provide Didi with more smart travel solutions.

He Xiaopeng, founder and CEO of Xpeng Motors, also posted on Weibo, expressing his emotion about the coincidence and opportunity of this transaction.

It is believed that the acquisition of Didi's smart car development business by Xiaopeng Motors is a win-win situation. Xiaopeng Motors has obtained a new model that is about to be mass-produced, as well as the corresponding huge demand for Didi drivers to buy cars; at the same time, Didi has also solved the problems of lack of car manufacturing qualifications and R&D investment.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.