China auto dealers set for M&A drive

China Grand Automotive’s acquisition of Baoxin Auto has received a poor reception from investors. But consolidation in the sector is only getting started.

China auto dealers set for M&A drive

When car dealer China Grand Automotive bought its luxury rival Baoxin for $2.7 billion in June, it was trying to make the most of a difficult outlook in its sector.
The acquisition was at least partly motivated by a drop in new car sales, a rarity for a market that has been growing year after year. China Grand Automotive is the biggest player in a crowded sector, so consolidation appeared the natural response....

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