Beijing (ZXZC)- Chinese electric vehicle maker XPeng announced on the Hong Kong Stock Exchange that the initial closing of the acquisition of DiDi's intelligent electric vehicle project assets occurred on November 13, 2023.

Photo credit: DiDi

Following this transaction, all entities within the target group have become wholly-owned subsidiaries of XPeng. The financial performance of the target group will be consolidated into XPeng's financial statements.

In an earlier announcement on August 28, XPeng conditionally agreed to acquire assets and research capabilities associated with DiDi's smart auto development business for a maximum consideration of HK$5.835 billion. The acquired assets encompass the research, design, and engineering development of new intelligent electric vehicles.

This move positions XPeng as the first automotive manufacturing company to receive comprehensive support from DiDi's ecosystem, leveraging anticipated significant synergies.

Moreover, XPeng and DiDi entered into a strategic cooperation agreement, outlining collaboration across various domains. This includes joint R&D of new intelligent electric vehicles, operating XPeng's vehicles on DiDi's ride-hailing platform, cooperation in marketing, financial and insurance services, charging infrastructure, autonomous driving, and joint development in international markets.

At the core of this collaboration is an A-segment smart electric vehicle, which will debut as XPeng's flagship product under its new brand. Production of the model is slated to commence in 2024.