BAIC becomes Daimler’s second major Chinese shareholder

1.58K 0

Beijing Automotive Groupe (BAIC) becomes a long-term investor in Daimler. Mercedes-Benz’s partner in China had acquired interest of approximately five percent in Daimler AG, thus cementing a long-term alliance.

The transaction was carried out through Investment Global Co. Ltd., a 100-percent subsidiary.  The terms of the deal remain a secret. Mercedes-Benz welcomes the investment.

“We are very pleased that our long-standing partner BAIC is now a long-term investor in Daimler. This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company,” says Ola Kallenius, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. Kallenius is aware that China is a major market for the premium car maker.

“This step reinforces our alignment with, and strong support for, Daimler’s management and strategy,” states Heyi Xu, BAIC chairman.

Daimler and BAIC have been collaborating as joint venture partners in China for the past sixteen years. Since 2003, the two entities have been working together on production, research and development and sale of passenger cars, vans and trucks. Ten years later, Daimler acquired an equity interest in BAIC Motor, a listed subsidiary of BAIC, currently holding 9.55 percent of its shares.

In 2018, Daimler also acquired 3.01 percent of BAIC BluePark New Energy Technology Co. Ltd., an electric vehicles manufacturer, operating exclusively for the Chinese market.

BAIC now becomes the second major Chinese automotive entity following Geely Group’s chairman, Li Shufu, who bought a 9.69 percent stake in Daimler last year. Daimler and Geely have already settled to build the next generation of the smart together.