Chinese automaker Great Wall Motor Co. is considering acquiring one of Daimler AG’s factories in Brazil.
The two companies are in talks about the potential deal, which could fetch several hundred million dollars, according to Bloomberg, that quotes sources close to the operation. Deliberations are ongoing and the companies could decide not to pursue a deal, it adds.
Buying a Brazilian plant would add to Great Wall’s string of factory acquisitions in the past two years, after the purchase of facilities from General Motors Co. in India and Thailand last year.
Citing difficult market conditions, the German automaker said in December it would cease car production in Brazil, where it opened its factory in Iracemapolis in 2016 to produce the Mercedes-Benz C-Class sedan and the GLA crossover.
A spokeswoman for Daimler said the company continues to explore different options for the factory, but declined to comment further.
Great Wall faces increasing competition in China for sport utility vehicles, a key segment for the automaker. Foreign brands by firms such as Volkswagen AG and Toyota Motor Corp. captured a larger share of China’s new SUV sales in 2020 than domestic firms, and the challengers appear ready to extend their sales lead, Bloomberg Intelligence analyst Steve Man wrote in May.