BEIJING (Xinhua) -- China's largest automaker, Shanghai Automotive Industry Corp. (SAIC), and Jiangsu Yuejin Automotive Group, the parent company of Nanjing Automobile Corp. (NAC), finalized a long-planned merger contract here on Wednesday. The two signed a letter of intent on cooperation at the end of July. Under the contract, Shanghai Automotive Co. Ltd., a subsidiary of SAIC, will earmark 2.095 billion yuan (285.82 million U.S. dollars) to purchase auto manufacturing and parts assets from NAC. In return, Yuejin group will hold 320 million shares in Shanghai Automotive Co. Other vehicle-related assets of NAC will be merged into a joint venture named Donghua Corp. set up by SAIC and Yuejin Group, which will hold 75 percent and 25 percent stakes, respectively. Chinese Vice Premier Zeng Peiyan attended the signing ceremony and urged domestic vehicle makers to step up collaboration and innovation.