Geely, owner of Volvo and holder of a substantial stake in Proton, is proceeding with the acquisition of a stake in Mercedes-Benz parent company Daimler, although the exact amount of the purchase is unknown. This was reported by Hong Kong’s The Standard newspaper, quoting state broadcaster China Central Television.
It is said that Geely has shown interest in acquiring between three to five percent of Daimler, which would account for about four billion euros. If the deal materialises, Geely would become the third largest shareholder of the Mercedes-Benz maker.
Daimler reportedly rejected a Geely bid to buy 5% of the company last month, but told Geely it was welcome to scoop up shares in the open market, sources added. Both carmakers apparently met in Beijing in November.
A spokesman for Geely declined comment. A Daimler spokesman said the company was “very happy with our shareholder structure at present,” but added that it would welcome new investors with a long-term interest in the company.
Insiders believe that this is all to do with electric vehicle technology, in view of China’s tough new quotas aimed at reducing pollution and lowering the country’s reliance on oil. Sources say that Geely wants to access Daimler’s EV battery technology and wants to start an EV joint venture in Wuhan.
Strangely, the report did not mention Daimler’s existing Chinese partners – the German company has a venture with BYD, China’s leading EV maker, and is also married to state-owned BAIC there. The latter has announced that it will stop the production and sales of vehicles with internal combustion engines by 2025, going full electric.
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Geely > all
Geely started only in 1997. 12 years later than Proton. Yet they got so much of cash to buy Volvo and stake in Daimler.
This stake alone maybe 10 billion
P1 bought LOTUS first!
Buy a stake at Daimler is better since it has put investment wrongly at Volvo that is still losing money.
U mean P1 that is still bleeding money ??
At the first place, geely shall not invest on Volvo that is still below the category of german.. It is not easy to beat german luxury and brand recognition. Neither here or there.
Volvo still losing money? Yeah… Right.
I think Mercedes is losing monies , market share and need huge investment when it comes electrification since diesel is having problems with emission control
It is wrong for Geely to invest in Daimler or buying a stake. End up the German may suck off the Geely investment in total lost especially Diamler like VW and Audi cannot afford anymore diesel gate in the making.
Most of the Daimler sales are diesel power and they need Geely or Volvo to help them for electrification and especially Geely market share in china.
Malaysia market is just too small even selling 10,000 units annually is just peanuts to make money
Better Geely keeps the Volvo investment as Volvo cars is having a record sales and record profit since 2013 till now .
By buying Daimler stake will erode into Geely profits hence Volvo record profits too need to be invested into Daimler stakes for no good reasons .
If volvo is lost making investment WHICH IS NOT as you claimed , Mercedes will the one that is going to lose the most money for Geely for the very first time.
Coming soon more Mercedes will be MADE IN CHINA to protect Geely investment .
More cheap Mercedes for Uber taxis to get economy of scale . In other word the changing of Proton Perdana to new name call Proton Mercedes.!!
Sadly then Mercedes is just another poor man car.
Ohsemm nw i can stick Mercedes Tristar badge on my persona^^
so i suppose by your logic.. i can stick a lambo badge on my VW?
Yes. It is. You are most welcome to do just that.
Does this meam I can slap on a WV badge on my Lamborghinhi?
Cheap thrill !!
Low Standard Thinking and Mentality
Get the original and stay original always
Considering the 3-5% stake, looks more like an strategic investment than an outright purchase or merger therefore we do not see a Geely-volvo though the stakes are much higher at Volvo, bottomline engineering expetise and brand power is very important to Geely for it’s strategic investment.
Habislah. Proton clowns will start dreaming of rebadging SLK as Satria.
The power of dreams.
Wrong move for Geely
Daimler is just another boring , taxi , limousine car making company.
Anyway Mercedes is not great car anymore.
Many view it as more Taxi orientated car nowadays
Perhaps Geely would want to put more Mercedes as Black Cab Taxis in Malaysia replacing the Saga, Exora and Persona.!!
Ya boring fellas dominate F1 , S Class sales , doing great with new line designs worldwide on other models, G wagen powers on and have such reliability for hired cars. Step into the 21st century why dont you
This Chinaman company is thinking BiG by acquiring a stake in Mercedes/Daimler. What will they think of next !!? Geely Memang Boleh.
Chinaman lazy to do research by themselves. Have money, invest, copycat. Done.
next gen Perdana flagship, current Mercedes-Benz E-Class.
Hello bro 3 to 5% only. Daimler did mention it would not allow more than that. So dont dream of E Class. Stick to Geely cars for future Perdana, if any.
Proton is related to Merc soon hehehehe
No la.. Daimler already rejected the offer..
Daimler already rejected Gely offer to buy 5% investment stake la in last Nov 2017. Tak semak kat euronews dgn reuters news ke? For the time being, maybe they don’t want chinese company to buy their share even for investment..