Chinese BAIC has become the largest shareholder of Daimler

Chinese BAIC has become the largest shareholder of Daimler

July 23, 2019 0 By autotimesnews

Holding received about five percent of voting shares

Beijing Automotive Industry Holding Co. Group (BAIC) has become Daimler’s second largest Chinese shareholder. The holding’s share was about five percent, while the founder of Geely, Li Shuf, owns a 9.69 percent stake in the German concern.

Daimler and BAIC are linked by a long-term strategic partnership since 2003, although it is only now that the group’s management has decided to buy a five-percent share of the group’s voting shares. Daimler, in turn, owns a 9.95 percent stake in a subsidiary of BAIC Motor, as well as a 3.01 percent stake in BAIC BluePark New Energy Technology, an electric vehicle manufacturer for the Chinese market.

In addition, BAIC and Daimler have several joint ventures. The Beijing Benz Automotive plant in Beijing produces the elongated A-Class sedan, GLA, GLC, C-Class and E-Class, and Beijing Foton Daimler Automotive manufactures commercial trucks. In addition, companies have a common research and development center.

In February 2018, the owner of the Geely group, Li Shufu, through Tenaciou Prospect Investment Limited, controlled by him, acquired 9.69 percent of Daimler shares. Also among the shareholders of the German concern is the Kuwait Fund Kuwait Investment Authority, institutional and private investors.

China is one of the priority markets for Daimler. Last year, 692,509 Mercedes-Benz cars were sold there.