A venture owned by Chinese automaker founder Zhejiang Geely Holding is buying a 79% stake in Chinese smartphone maker Meizu.

This was announced by the antitrust regulator of China, reports Scmp.

Thus, Hubei Xingji Shidai Technology Co Ltd will be able to buy a stake from two Meizu shareholders. Xingji Shidai and Meizu have already signed a strategic investment agreement.

“There is a strong link in technology between car cockpits and smartphone software,” Geely explained its decision.

Note that at one time Meizu was one of the most popular smartphone brands in China, but when Xiaomi entered the market, Meizu’s market share was reduced to 1%.

Meanwhile, Xiaomi, on the contrary, intends to master the auto market. The company, after registering Xiaomi Automobile Co in September 2021, registered a second automobile company. At the end of last year, Xiaomi Automobile Technology Co. was established.