Auto industry pulls out stops to tackle slumping sales
BAIC acquires stake in Daimler
BAIC Group acquired a 5 percent stake in German carmaker Daimler AG in July, becoming the third-largest shareholder of the parent company of Mercedes-Benz. This deal has fulfilled BAIC's intention of cross-holding that dates back to 2013 when the German carmaker acquired a stake in the group's Hong Kong-listed arm.
Neither side disclosed the amount of money involved in the acquisition of a 2.48 percent stake and voting rights amounting to a 2.52 percent stake, but it was estimated to be around 2.5 billion euros based on Daimler's stock prices. BAIC and Daimler have several joint ventures, including Beijing Benz Automotive, which produces Mercedes-Benz models in China, and Foton Daimler, which manufactures heavy duty trucks in the country.
China's Geely, owner of Swedish carmaker Volvo Cars, is the largest shareholder of Daimler, with a 9.69 percent equity purchased in early 2018.
