Evergrande vehicle unit selling Protean to EV maker Bedeo

CHINA Evergrande Group's automotive unit is nearing a sale of UK startup Protean Electric to e-mobility company Bedeo, sources said. The divestment by China Evergrande New Energy Vehicle Group could be announced soon, they said. The deal would help Europe-focused Bedeo, which supplies light commercial vehicles and technology for zero emissions transport, expand into Asia and the United States.

Protean makes in-wheel motor technology used in electric cars, self-driving vehicles and commercial vans. The company has about 150 employees spread between the United Kingdom, China and the US and has been issued more than 200 patents. It's led by CEO Andrew Whitehead, a former designer of Formula One racing engines for Honda Motor, its website shows. Evergrande and Evergrande NEV couldn't be immediately reached for comment. A representative for Bedeo declined to comment.

Evergrande bought Protean in 2019 for US$58 million, part of a series of deals made by the Chinese property developer as it pushed into electric vehicles, said its annual report that year. It spent billions of dollars on such acquisitions, including the takeover of remnants salvaged from the bankrupt Saab Automobile.

The Chinese group still has yet to deliver a single vehicle, despite billionaire founder Hui Ka Yan's ambitions to take on industry giants like Tesla. More recently, Evergrande is trying to shed assets in a bid to avert default as it grapples with more than US$300 billion of liabilities. It's been seeking a buyer for its property management arm and sold off holdings in other companies including a Chinese bank.

Bedeo, founded by Turkish engineer Osman Boyner, has developed powertrains for electric vehicles and is seeking to expand the use of its technology in the marine and aviation sectors. In 2019, it signed a contract to supply drivetrain solutions to light commercial vehicles made by PSA Group, now known as Stellantis, according to its website. It has also worked with customers including express delivery company FedEx and British online grocer Ocado Group. BLOOMBERG