Search CarGuide.PH

February 26, 2018

Geely Buys 9.69 Percent Stake in Daimler AG, Parent Company of Mercedes-Benz

Li Shufu, the chairman and main owner of Chinese carmaker Geely has amassed a 9.69 stake in Daimler AG, the parent company of Mercedes-Benz. The stake, worth nearly USD 9 billion at the current market price for Daimler shares, makes Li the biggest single shareholder of the German automaker.

Newswires report that Geely was buying Daimler shares as it seeks an alliance in electric vehicle (EV) technology—a response to Chinese government requirements for more clean cars to be put on the road to cut pollution.

In a statement, Daimler AG said: “Daimler is pleased to announce that with Li Shufu it could win another long-term orientated shareholder, which is convinced by Daimler’s innovation strength, the strategy and the future potential. Daimler knows and appreciates Li Shufu as an especially knowledgeable Chinese entrepreneur with clear vision for the future, with whom one can constructive discuss the change in the industry.”

Geely has been building up a stake of just under 10 percent through purchases of Daimler AG’s shares in the stock market in recent weeks.

Aside from its stake in Daimler AG, Zhejiang Geely owns Swedish carmaker Volvo, and last year acquired a 49.9 percent stake in Malaysian automaker Proton. They also won control of the British sportscar maker Lotus as well as rescuing the maker of London’s iconic black cabs, Manganese Bronze Holdings.

Last December, Geely also spent US$ 3.9 billion to become the biggest shareholder of Volvo AB, the world’s second-largest truck maker.

1 comment:

Feel free to comment or share your views. Comments that are derogatory and/or spam will not be tolerated. We reserve the right to moderate and/or remove comments.