Zongshen acquires Loncin and creates a mega empire

Zongshen Power and General Loncin will walk hand in hand from now on, following the agreement signed by both parties on July 2. It stipulates the purchase of the 24.55% of Loncin General’s total share capital by Zongshen, with the latter also becoming the majority shareholder of Loncin General.

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Zongshen Power to take over Loncin General

In the transaction, Zongshen Power will acquire 504 million shares of Loncin Generalas reported by local media China Motor World, for an estimated value of about 3.346 billion yuanOnce the new agreement between the two companies is concluded, Zongshen will be responsible for managing Loncin’s industrial, business and commercial activities.

This agreement has been signed under an initial framework of collaboration between both companies. The idea is to promote the Voge and Cyclone brands in search of consolidating a range of models with a certain premium halo, something that until now, at least in Europe, has not caught on. At least not on the terms that the two Asian giants had planned.

Zongshen Group is the new majority shareholder of Loncin

Now, under the synergy established between the two companies, a scenario is expected where both will benefit from greater development, thanks to the arrival of resources in both directions. Let us also remember that both Zongshen and Loncin have signed collaboration agreements in our continent, with brands such as BMW, Norton or Piaggio.

In particular terms, Zongshen, under its Cyclone brand, presented the new RA 600 Bobber this year, while Voge is preparing at least 10 new models for 2024, including the recently released 900 DSX with which the brand “hits above its natural competition and closes the gap with premium brands.”

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