Chinese concerns are fighting for DaimlerDecember 15, 2019
Daimler’s main joint partner in China, the BAIC Group, has embarked on a plan to double its stake to about 10% and gain a seat on the German automaker’s board of directors, as it seeks to surpass Geely’s rival.
State-owned companies Beijing Automobile Group Co Ltd (BAIC), already owning a 5 percent stake in the German concern Daimler, began to buy up shares on the open market, reports Reuters. BAIC is currently the third largest shareholder of Daimler, but a 10% stake will make it the largest, surpassing its Chinese rival Zhejiang Geely Holding Group, which owns 9.69% of Daimler and is seeking to expand its partnership with Daimler in China. It will also allow you to take a seat on the board of directors, which Geely does not have.
HSBC, which previously advised BAIC on the purchase of a 5% stake in Daimler, is helping the Beijing group in new investments, one source said. When asked by Reuters, Daimler commented that it had not received any notice that BAIC intends to increase its stake. Hubertus Troska, the head of Daimler in China, said Friday that “we welcome long-term investors in Daimler.”
BAIC has been Daimler’s main partner in China for many years and operates Mercedes-Benz factories in Beijing through a joint venture between two automobile manufacturers, Beijing Benz Automotive. The partners also planned to reconstruct production facilities to produce Mercedes-Benz trucks through the Foton Daimler Automotive joint venture for the production of commercial vehicles (BFDA), Reuters reported in August, citing a document and sources familiar with the issue.
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