Geely to acquire 100% of Tucson’s Asia-Pacific business

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Smart Car Reference has exclusively learned from people familiar with the matter that Geely Holding Group intends to acquire all the shares of TuSimple’s Asia-Pacific business, and has recently made a takeover offer to TuSimple’s future U.S. headquarters. However, details such as the purchase price have not yet been announced.

According to the people familiar with the matter, TuSimple had previously planned to sell its Asia-Pacific business. Based on the existing deep cooperation between the two parties and the huge synergy potential, Geely Holding Group submits this non-binding letter of offer on behalf of the buyer to acquire its Asia Pacific business from Tucson Holdings, including but not limited to operating or supporting such business. Associated assets required for the subsidiary business and its operations in the Asia Pacific region.

In February, Tucson agreed with U.S. authorities that it would hand over some technical oversight of its self-driving truck business to the U.S. government. It will also adopt a technology control plan to limit access to autonomous driving data by its Chinese division. The restrictions involve some information, including source code and algorithms for the self-driving truck business.

Market analysis believes that if the acquisition of Geely Holding Group is successful, Tucson can completely solve the regulatory problems caused by the US authorities due to its Chinese business in the future, which will effectively benefit the future stock price of Tucson. Tucson’s second-quarter 2022 revenue was $2.6 million, a 73% year-over-year increase. Net loss of $109 million narrowed year-over-year. As of the time of publication of the report, Tucson Future reported $8.32 per share, with a market value of $1.868 billion.

Zhejiang Geely Holding Group was founded in 1986. To achieve revenue of US$52 billion in 2021, it owns Geely Automobile, Lynk & Co, Volvo Cars, Polestar, Proton Motors, Lotus, London Electric Vehicles, Yuanyuan New Energy Commercial Vehicles, Taili Flying Cars, Cao Cao Special Vehicles, Dutch Malaysia, Saxo Bank, Mingtai and many other international famous brands.

TuSimple was established in 2015 by CEO Chen Mo, CTO Hou Xiaodi, and Chief Architect Hao Jianan. Its main business is to provide unmanned truck freight services to the world. The Tucson Future brand was originally founded in Beijing, China (Beijing Tucson Future Technology Co., Ltd.) and San Diego, California, USA, and then developed to Shanghai, China, Hebei, and Tucson, Arizona, USA, and set up R&D application centers in the above five regions. On April 15, 2021, TuSimple will be listed on Nasdaq in the United States, becoming the world’s first listed driverless company.

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