China’s Xpeng to acquire Didi’s smart EV unit in deal worth up to $744 million

Chinese electric car company Xpeng said it will acquire ride-hailing giant Didi’s smart electric vehicle unit and the two companies will form a strategic partnership.

Xpeng’s shares surged around 16% in early Monday trade.

As part of the deal, which could be worth as much as $744 million, Xpeng will launch an A-class model next year under a new brand, currently called MONA, aiming to expand in the mass-market segment.