In January this year, a report emerged that popular Chinese automaker Geely is planning to acquire a local smartphone brand with sources close to the matter touting the phone maker in question to be Meizu. The rumor has turned out to be true as China’s State Administration for Market Regulation has officially announced that Hubei Xingji Times Technology Co., Ltd (also referred to as Xingji Times) has offered to acquire the equity of Zhuhai Meizu Technology Co., Ltd (Popularly known as Meizu Technology).
For clarity, Xingji Times was established in September 2021 with a registered capital of 715 million yuan and is yet to commence business operations. Geely Group holds 32% of the shares as the largest shareholder of the company. So, Geely represents the largest interest in the new acquisition.
Meizu technology is presently controlled by Huang Xiuzhang and Taobao China Software Company with 49.08% and 27.23% shares respectively. Geely’s Xingji Times plans to sign an agreement with Meizu and Huang Xiuzhang to acquire a 79.09% stake in Meizu Technology. If the deal scales through, Huang Xiuzhang’s shareholding in Meizu technology will be reduced to 9.79% while Taobao China will withdraw from the shareholding and control of Meizu entirely. The 79.09% shares Geely is acquiring will give the carmaker control of the innovative Chinese tech company.
Meizu’s fortune has not been on the bright side in recent times due to a slump in its smartphone business. Thus, Geely will have a tough job turning around the fortunes of Meizu in the highly competitive Chinese smartphone market.
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