China's BAIC Motor Corporation has acquired a 35% stake in Fujian Benz, a joint venture with Germany's Daimler AG, to become the company's second-largest shareholder – according to local reports.
Under the new structure, Daimler Vans Hong Kong Ltd still controls 50% of the equity, while Fujian Motor Industry Group Corporation's stake has been reduced to 15%.
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Fujian Benz was established in 2007 and produces, distributes and sells Mercedes-Benz light passenger vehicles and commercial vehicles, including the Viano, Vito and Sprinter models.
The entry of BAIC into the partnership paves the way for broader synergies and collaboration between the two mainland Chinese companies, including cross-selling of products.
BAIC already has a partnership with Daimler AG, called Beijing Benz Automotive Company, established in 2005 for the production and sale of Mercedes-Benz passenger vehicles including the C-class and E-class passenger cars and SUVs such as the GLA and GLC.
Separately, Beijing Electric Vehicle Company – a subsidiary of BAIC, has denied that it is looking to raise US$460m through a separate public listing on the Shanghai Stock Exchange.
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