GAC shares jump on FAW tie-up plans amid Beijing drive for car industry mergers

Shares of Guangzhou Automobile Group (GAC) jumped after announcing plans to integrate resources with FAW Group, following Beijing’s call for consolidation amid weakening domestic demand. GAC planned to acquire part of FAW’s equity in a joint venture vehicle manufacturer through a share issuance and raise supporting funds, the Guangzhou-based carmaker said in an exchange filing on Monday night, after a full-day trading halt. Upon completion, the unlisted FAW would become GAC’s second-largest...