Daimler has announced plans to take a 12% stake in its Chinese partner Beijing Automotive Group also known as BAIC in Europe.
Daimler will pay 640 euro for each stake and the company believes it will help it to secure a strong strategic position in the world’s largest car market.
The premium car segments have performed well in China’s growing market in recent years.
However, Mercedes-Benz has not grown as quickly as rivals BMW and Audi and is seeking to get greater control over its China sales.
The agreement means that Daimler will receive two seats on the board of directors of BAIC Motor.
The two companies also agreed that BAIC will increase its stake in the production joint venture Beijing Benz Automotive Company (BBAC) by 1% to 51% and will be able to consolidate this joint venture within BAIC.
Daimler’s shareholding in BAIC is subject to the approval by the relevant authorities.
A closing of the transaction is expected by the end of this year or early next year.
06 Feb 2013
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