The BAIC Group is looking to buy a stake of up to 5% in Daimler AG, which is the parent company to Mercedes-Benz. According to a Reuters report, the move is means for BAIC to further secure its investment in Beijing Benz Automotive, a joint venture between the China-based company and Mercedes-Benz.
In the report, sources close to the matter revealed that BAIC’s intention to acquire a piece of the German carmaker started earlier this year, with certain shares being purchased on the open market. “Daimler’s share price is currently being underpinned by a buyer who appears to be building a stake,” one of sources said.
For now, there’s no official word from either party, and German regulatory filings do not indicate BAIC as being a significant shareholder. It’s estimated that BAIC would need to fork out nearly three billion euros for a 5% stake in Daimler, based on the German company’s closing market value of 57.6 billion euros as of last Friday.
This “open market” approach to share purchasing is reminiscent of Li Shufu path to becoming Daimler’s largest shareholder with a 9.69% stake (through Tenaciou Prospect Investment Limited). At the time, the Zhejiang Geely Holding founder had to purchase shares from other shareholders as Daimler declined to issue new shares because it did not want to see existing stocks diluted.
BAIC’s partnership with Daimler goes back more than a decade, with Beijing Benz being responsible for assembling a few Mercedes-Benz models in China. In March last year, Daimler themselves announced it had purchased a 3.93% stake in Beijing Electric Vehicle (BJEV), a subsidiary of BAIC, to strengthen its partnership in the area of new energy vehicles (NEV).
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With chinese economy like this. One day it will collapse
China & Germany cant better us. Nope
lulz every nations have accessible to affordable PRC goods except poor usa people forced to buy artificially expensive PRC goods due to stupidity ruler set taxation.
BAIC doing this is shocking. Just after Geely bought 10% of Daimler.
I cannot understand. Geely was born in 1997. Proton was born in 1985. But Geely got so much of money to buy 10% of Daimler.
How is this so? Proton had the China market also to sell their cars.
Implying that Swedes, Brits, & Germans don’t have a hard work ethics. Hahahaha.
Yeah do you even realise what other companies did Geely bought?
Better to sell our GLCs to China also, they will make productivity jump 10X. First to go is PNB.
We will collapse before them no worries , we should put aside the race and culture, there are ruling the world
After 60yrs, it is hard for us. The corrupted is using them to divide us apart.
The only factor the world economic (other than China) will collapse is Mr Trump, who thought he could win the trade war. He still underestimate China’s capability and power, his ego will drag his own country and affecting world economic. You must be sleeping in your lecturer class
DRB Hicom entitled to buy a stake in Daimler too. DRB’s partnership with Daimler goes back decades ago, with DRB Benz being responsible for assembling a Mercedes-Benz models in Msia.
Yes but no money no talk
DRB Hicom is contract assembler, not JV partnership like BAIC.
Includes these few brands from vw into BAIC shopping cart as well please.
Bentley, Bugatti, Lamborghini, …..