Daimler and BMW are considering a share swap to boost cooperation according to a report in business magazine Der Spiegel.

The report said that each firm would take a 7% stake in the other, the report said.

Der Spiegel also said that the Quandt family, who own 46% of BMW, oppose cross-ownership fearing that Daimler would mount a full takeover of BMW.

The German government has been informally approached to find out whether it would overrule any opposition to cross-ownership from antritrust authorities, the magazine said.

The report added that Daimler and BMW will shortly announce details of a proposed cooperation for purchasing components.