China’s BAIC buys 5% Daimler stake; Daimler welcomes investment

Business

FILE PHOTO: The logo of Beijing Automotive Group (BAIC) is seen during the Auto China 2016 auto show in Beijing, China, April 29, 2016. REUTERS/Damir Sagolj/File Photo

FRANKFURT (Reuters) – Beijing Automotive Group Co Ltd said on Tuesday that it had purchased a 5% stake in German luxury carmaker Daimler (DAIGn.DE).

Daimler, which since 2013 has held a stake in a Hong Kong-listed BAIC subsidiary, said it welcomed the investment.

“This step reinforces our alignment with, and strong support for, Daimler’s management and strategy,” said BAIC chairman Heyi Xu.

In May, Reuters reported that BAIC was seeking to buy a stake of up to 5 percent in Daimler as a way to secure its investment in Chinese Mercedes-Benz manufacturing company Beijing Benz Automotive.

BAIC’s investment comes as Daimler has been deepening its alliance with Geely after the Chinese’s group’s chairman Li Shufu bought a 9.69 percent stake in Daimler in 2018.

Geely declined to comment.

Reporting by Tom Sims in FRANKFURT; Additional reporting by Brenda W. Goh in SHANGHAI; Editing by Michelle Martin

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