By Martin MouSAIC Motor Corp. has terminated an agreement to acquire a stake in troubled car-rental company CAR Inc.SAIC Motor HK Investment, a wholly-owned unit of SAIC, decided to end the deal after disagreements emerged in negotiations over the transfer of equity, the Chinese car maker said on Monday. SAIC HK and two substantial shareholders of CAR, China's largest car-rental company, had signed a preliminary deal in which SAIC HK agreed to take a 28.92% stake in CAR for about 1.90 billion Hong Kong dollars (US$245.0 million). Hong Kong-listed CAR shares have fallen sharply this year amid troubles at Luckin Coffee Inc., a cafe operator chaired by CAR's former chairman Lu Zhengyao. The former chairman resigned from his position at CAR last month. Luckin Coffee had disclosed in April that employees fabricated much of its 2019 sales figures.

Source: Wall Street Journal July 20, 2020 05:12 UTC