Didi Global Inc. has agreed to sell its smart car development arm to Xpeng Inc. for HK$5.84 billion ($744 million), backing away from a promising business in the world’s largest electric vehicle market.
Xpeng, one of the country’s largest EV startups, will issue shares at HK$64.03 apiece to Didi, the company said in a statement Monday. Didi will end up about a 3.25% stake in Xpeng, whose shares surged as much as 14.6% in early Hong Kong trading on the deal.
