British electric vehicle (EV) maker Saietta has said that it is acquiring electric powertrain company e-Traction from China Evergrande Group’s automotive unit in a deal worth up to 2 million euros ($2.31 million), Reuters reported on November 11.
In 2019, Evergrande announced the acquisition of 70% equity of e-Traction’s parent company for 500 million yuan ($78 million). Dutch company e-Traction has the most advanced wheel hub motor technology in the world, which is why Evergrande brought e-Traction under its control.
“This acquisition will allow Saietta to accelerate its business plan by several years,” Saietta Chief Executive Wicher Kist said in a statement. As part of the deal, Saietta said China Evergrande has waived around 21.2 million euros in loans it had made to e-Traction.
At present, Evergrande is dealing with a huge ongoing debt crisis and has been selling some assets in a hurry to raise cash. The group sold its shares in Hengteng Network from November 4 to 5, cashing in about HK$717 million ($92.1 million). Reuters previously reported that NEVS, a Swedish EV unit under Evergrande Group, is negotiating with U.S. and European venture capital companies and industrial partners to find a new owner.