Didi May Come Under China’s State Control: Report
Beijing city is considering taking Didi Global under state control and has proposed that government-run firms invest in the Chinese ride-hailing company, Bloomberg News reported.
The central thrust of the Beijing city government’s proposal is to regain control over one of its largest corporations, and particularly the data it holds, Friday’s Bloomberg report said.
Under the preliminary proposal, some Beijing-based companies including Shouqi Group, part of the state-owned Beijing Tourism Group, would acquire a stake in Didi, Bloomberg reported, citing unidentified people familiar with the matter.
Other scenarios being considered include the consortium taking a nominal share accompanied by a so-called “golden share” with veto power and a board seat, it added.
Didi, Beijing city government, Beijing Tourism Group, and Shouqi Group did not immediately respond to requests for comment from Reuters.
The Wall Street Journal reported in July that Didi was considering going private to placate China’s concerns over data security and compensate investor losses since it listed in the United States. This was later denied by Didi.
