Chinese car manufacturer BAIC Motor is currently in the midst of talks with Daimler to purchase a stake in the German automaker.
As it stands, Daimler owns a 10 per cent stake in BAIC and the two companies have already formed numerous joint ventures in China overseeing local production and sales of Mercedes-Benz cars.
While details about the possible deal are limited, sources close to the matter believe that if an agreement is reached, BAIC could become one of the top shareholders in Daimler. As it stands, Daimler’s two largest shareholders are Kuwait’s investment authority (6.8 per cent) and Renault-Nissan (3.1 per cent).
On the back of these reports, Daimler said “BAIC is our most important partner in China. Generally speaking we want to remain attractive for long-term investors. Investors from China are also welcome.”
If BAIC does indeed succeed in purchasing a stake in Daimler, it will become just the latest Chinese firm investing in a global automaker following the Dongfend Group’s investment in PSA Peugeot Citroen and SAIC Motor’s stake in General Motors.