Is Daimler turning Chinese?
First Geely, now BAIC wants to own a big chunk of Mercedes-Benz's parentDaimler’s Chinese joint-venture partner, Beijing Automotive Industry Holding (BAIC), wants to buy a large slice of the world’s oldest car-maker, according to news agency Reuters.
BAIC, a state-owned enterprise and holding company for several car-makers based in China’s capital, has told Daimler AG’s Supervisory Board in Stuttgart that it is looking for up to five per cent of the German auto giant, sources told Reuters.
It has begun buying shares in the parent company of Mercedes-Benz on the open market and has asked the local Beijing authorities to help it.
It follows the huge, secretive purchase of 9.7 per cent of Daimler last year by expanding Chinese group Geely, which has become Daimler’s latrgest shareholder and also controls Volvo, Lotus and Proton and, now, smart.
On current share prices, a five per cent chunk of Daimler would cost about $US3.5 billion, with Daimler valued at around $US65 billion yesterday.
It’s clear that while BAIC might be buying up Daimler shares, its holding remains beneath the three per cent level that would mandate a disclosure to German securities rules.
While Geely founder Li Shufu used shell companies, banks and a host of financial tricks to keep his stakeholdings a secret until he was ready to disclose them, BAIC flagged an interest in buying a chunk of Daimler as long ago as 2015
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