BAIC buys 5% Daimler stake

Beijing Automotive Group Co. Ltd (BAIC) said on Tuesday that in order to strengthen long-term strategic cooperation between the two sides, BAIC had purchased a 5 percent stake in German luxury carmaker Daimler. The transaction consisted of 2.48 percent of direct shareholding and the right to obtain additional voting rights equal to 2.52 percent of the shares.

In May, it was 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 (BBAC).

After the successful acquisition, BAIC Group became one of Daimler's major shareholders, which will help further deepen cooperation. BAIC Group and Daimler operate Daimler's largest overseas R&D center in Beijing.

In 2018, the sales volume of passenger cars produced by the two parties in China reached 485,000 units. In the first half of 2019, BBAC sold 282,000 cars, and sales will continue to grow with the launch of several new cars.