By Martin Mou 
 

Volkswagen AG has agreed to acquire a 50% stake in the parent company of Shanghai-listed Anhui Jianghuai Automobile Group Corp.

After finalizing the investment deal, Volkswagen is also expected to increase its stake in its joint-venture with Jianghuai Automobile to 75%, the Chinese car maker said Friday, without disclosing financial terms of the deal.

The two companies plan to spend 1 billion euros ($1.11 billion) on raising the annual output of the joint venture to 350,000-400,000 units by 2029, Jianghuai Automobile said.

Volkswagen might also introduce new models to the joint venture, including popular brands of the Volkswagen family and new-energy vehicles, it said.

Jianghuai Automobile's parent is currently wholly owned by the state-owned Assets Supervision and Administration Commission of Anhui province, where Jianghuai is based.

The commission and Volkswagen will increase their investments to each hold a 50% stake in the Chinese car maker's parent Anhui Jianghuai Automobile Group Holding.

Write to Martin Mou at martin.mou@wsj.com

(END) Dow Jones Newswires

May 28, 2020 22:23 ET (02:23 GMT)