China's Geely Is Buying $9 Billion Stake in Daimler

China's Geely Is Buying $9 Billion Stake in Daimler

China's Geely Is Buying $9 Billion Stake in Daimler

Executives hope the reform will make Daimler more flexible as it adapts to a changing environment for the industry, electrifying a growing share of its range and offering new digital services like ride- or car-sharing.

With revenue exceeding RMB 270 billion (US$ 42.7 billion) in 2017, the Zheijang Geely Holding Group is China's largest privately owned automotive manufacturing company and one of the world's leading providers of electro-mobility.

Dailmer didn't say whether Mr. Li would get a board seat, but said it looked forward to discussing the investment with him.

The Daimler stake was purchased by an investment company headed by Li called Tenaclou3 Prospect Investment, according to the Daimler filing.

The Chinese firm, which controls Hong Kong-listed Geely Automobile Holdings Ltd, has ambitious expansion plans for both its home market and overseas as it takes on global auto majors. Daimler is working on both electric cars and battery-powered trucks.

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Geely said on Saturday there were no plans "for the time being" to raise the stake further. HNA Group Co has a stake of about 8.8 per cent in Deutsche Bank AG, and industrial-robot maker Kuka was purchased by Midea, the world's largest appliance maker a few years ago.

Mercedes-Benz sold more cars in China than any other market a year ago, some 600,000 cars and SUVs, he said.

Geely had previously acquired a 49.9 percent controlling stake in Malaysian automaker Proton previous year.

As Bloomberg News reports, the move has been weeks in the making, with Geely buying up just under 10 percent of Daimler's shares in the stock market. The deal means Geely is now the biggest shareholder in Daimler which owns Mercedes-Bens and makes trucks and vans. Currently, sovereign wealth fund Kuwait Investment Authority owns a 6.8% stake in Daimler, while automotive alliance Renault-Nissan holds a 3.1% stake.

Global motor manufacturers are seeking to strike deals in China, the world's largest auto market, but centred on electric cars in order to get an increased foothold in a segment set to grow rapidly in the coming years.

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