CHINA Knowledge reported that China Zhengtong Auto Services Holding Ltd which principally operates 4S dealership, logistics business and lubricant oil businesses has received approval from its board of directors to acquire the auto distributor Tongfang at a consideration of CNY 5.5 billion.

The Hong Kong-listed buyer expects to expand its luxury vehicles market via the acquisition. CEO Mr Wang Kunpeng said sales of luxury vehicles account for around 80% of the total.

The firm Board Secretary said in the first ten months of this year, China Zhengtong Auto Services' luxury vehicle sales surged 40% from a year earlier, adding that the company will be not largely affected by the Chinese government's auto anti-dumping policy.

China has started levying anti-dumping duties on imports of US made sedans and sports utility vehicles with emission above 2.5 litres.