Chinese group BAIC wants to acquire a 5% stake in Daimler, the deal being estimated at about 3 billion euros, according to sources inside the company.
BAIC, Daimler’s Chinese partner, plans to become a minority shareholder in the German group so they can secure their investment in Beijing Benz Automotive, the joint venture set up by the two entities.
Some sources inside the company claim that BAIC has already notified Daimler of its intentions, with the 5% package being estimated at around 3 billion euros. According to Reuters, BAIC and Daimler did not comment on this information.
Daimler has excluded the sale of a stock package, so potential buyers have to “build” their stock in a gradual fashion. BAIC also expressed its desire to buy shares in Daimler in 2015 and in 2018, after the Chinese billionaire Li Shufu (from Geely) acquired 9.69% of the German group.
We remind that Daimler and BAIC have a mixed company that produces, among others, different Mercedes models for the Chinese market. Until recently, Chinese laws imposed on foreign manufacturers to sign such partnerships with local companies if they wanted to operate on the world’s largest car market.