GREE Electric Appliances Inc., China’s largest air-conditioner maker, is diving into the fast-growing electric vehicle market with its 13 billion yuan (US$2 billion) acquisition of Zhuhai Yinlong New Energy Co.

    The Shenzhen-listed appliance maker, which announced its intention to buy closely-held Yinlong in March, will fund the purchase by selling 834.9 million new shares at 15.57 yuan apiece, about 19 percent lower than the stock’s last traded price, according to a filing Friday.

    Gree’s shares, halted from trading since February, will remain suspended until after the Shenzhen Stock Exchange and other government agencies review and approve the deal. The timing of the approval is not certain, according to the filing.

    Gree is among the dozens of startups and industrial companies venturing into the field of electric vehicles. China has designated new energy vehicles a strategic industry as part of a broader push to upgrade its manufacturing sector. Electric vehicles also would curtail tailpipe emissions that contribute to worsening air pollution in major cities.

    The company is making the purchase in order to support the government’s push to clean up the environment and promote greener technologies, Gree chairman Dong Mingzhu said in an interview in Beijing in March.

    “The decision was made with the premier’s work report target to have blue skies, green pastures and clear water,” she said, referring to Premier Li Keqiang’s report to the legislature that listed the government’s priorities for the year. (SD-Agencies)