BAIC Group planning to increase its stake in Daimler AG

KUALA LUMPUR: BAIC Group, the Chinese state-owned enterprise, is looking forward to increasing its stake in the German automotive corporation, Daimler AG. Notably, BAIC Group already holds a 5% stake in Daimler AG, which was acquired earlier this year in July.

Reports suggest that BAIC had sought help from HSBC to build its initial 5% stake. Currently, BAIC stands at the second position in terms of shareholding in Daimler AG. The top shareholder is Zhejiang Geely Holding Group that holds a stake of 9.69%, making it a potential rival of the BAIC Group.

Daimler AG and BAIC Group have been long-term partners, and this acquisition will further cement their relationship. Daimler AG currently holds a 9.55% stake in BAIC via its Beijing Benz Automotive JV. Besides, it also holds a 3.01% stake in a separate JV called BAIC BluePark New Energy Technology.

Ever since their partnership, both the companies have co-operated in the production, research, development, and the sale of passenger cars, vans, and trucks. BAIC had been Daimler’s partner for operating the Mercedes Benz factories as well.

“Daimler AG appreciates BAIC as long-standing partner and long-term investor,” mentions Daimler, “Such shareholders help us to further safeguard and strengthen the capitalization of our company,”.

Geely, on the other hand, offered a neutral reaction, “we are a long-term investor in Daimler. We do not react spontaneously to any volatility, and we support Daimler’s management and their strategy.”

Zhejiang Geely Holding Group had taken over the highest stake in Daimler with an aim to develop electric and self-driving cars under a joint alliance.

As per the reports, Daimler also assured BAIC that any further new Industrial alliance that involves Mercedes and a Chinese partner would be in accord with them.

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