Published: Sun, February 25, 2018
Sci-tech | By Eric Barnett

Geely buys Daimler stake in China's biggest overseas auto deal

Geely buys Daimler stake in China's biggest overseas auto deal

His interest in Germany is the latest in a string of acquisitions by wealthy Chinese firms and individuals, including conglomerate HNA Group Co (海航集團), which owns an 8.8 percent stake in the nation's biggest lender Deutsche Bank AG.

"A Geely stake in Daimler would underscore their push for cooperation that'll help them get more expertise, like electric cars", said Frank Biller, a Stuttgart-based analyst with Landesbank Baden-Wuerttemberg. "Daimler already has a strong footing in China".

In addition to be known as owner of Swedish automaker Volvo Cars, at the end of a year ago, Geely also became known as the largest shareholder of the commercial vehicle manufacturer Volvo Trucks.

Its move to buy more Daimler poses a big challenge for the Germany-based auto maker since Mercedes-Benz already holds an industrial alliance for developing vehicles with Renault-Nissan, which is owner of 3.1% of Daimler, and announced plans to build new electric vehicles with existing joint venture partner in China BAIC Motor Corporation. The share reportedly has a market value of roughly 9 billion dollars.

Janelle Monáe Unleashes "Django Jane" & "Make Me Feel"
Janelle Monae has marked her return to music by dropping two singles from her forthcoming new album Dirty Computer . The first, titled " Make Me Feel ", was selected as Zane Lowe's World Record on Beats 1 radio today (February 22).

Geely, which is racing to build electric cars in order to meet tough Chinese emissions rules that come into force next year, is keen to strike a deal with Daimler over sharing battery technology, according to two people familiar with the company's thinking. The company made regulatory disclosures after the close of markets on 23 February 2018.

In a statement, Daimler said it was pleased to have Li as a "long-term-oriented shareholder" and described him as "an especially knowledgeable entrepreneur with a clear vision for the future, with whom one can constructively discuss the change in the industry".

The investment furthers Hangzhou-based Geely's foray into the European premium automotive market and ends months of speculation about a tie-up. "We are just one of the investors in that given company", the source added.

Li Shufu: "The competitors that challenge the global auto industry in the 21st century technologically are not part of the automotive industry today".

Like this: