Qihoo 360 Technology is to invest 2.9 billion yuan (US$454 million) in EV maker NETA Auto unless authorities block the move. The Chinese internet security company will become NETA Auto’s second-largest shareholder, with 17 percent of equity once the transaction is completed.

The founder and chairman of Qihoo ZHOU Hongyi said in May his company would work with NETA on low-end models with good performance and a high level of security. At the time few believed Qihoo would actually invest. Any actual investment is still pending approval by authorities.

Qihoo said there were great prospects for mutual benefits between internet security and EV intelligent networks. NETA Auto is valued at 22 billion yuan (US$3.4 billion) and made a loss of 1.3 billion yuan (US$200 million) in 2020. In September, it delivered 7,700 vehicles, up 16.4 percent on August.