China’s Beijing Automobile (BAIC) plans to double its stake in Daimler, according to a Reuters report citing company insiders.
The Chinese state owned automaker is said to have launched a plan to increase its stake in Mercedes-Benz’s parent company to 10% from the 5% it acquired earlier this year and gain a seat on the company’s management board.
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The move would also allow BAIC to upstage fellow Chinese automaker Zhejiang Geely Holding Group (Geely), which owns a 9.69% stake, as Daimler’s largest shareholder. BAIC clearly wants to be seen as the German automaker’s main partner in China.
BAIC is looking to buy the additional Daimler shares on the open market through its wholly-owned Investment Global subsidiary, with the support of HSBC.
The Chinese company is looking to strengthen its long standing partnership with Daimler, which includes the Beijing Benz joint venture which makes Mercedes-Benz passenger vehicles, the Foton Daimler Automotive commercial vehicle joint venture and a new EV battery partnership announced in August between Mercedes-Benz Energy and Beijing Electric Vehicle.
Daimler’s China CEO Hubertus Troska said his company had not received any notification that BAIC had raised its stake, adding “we welcome long-term investors in Daimler. We like each other, let’s see how things develop”.
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