Jump to content


SEARCH

2

Geely plans to become largest Daimler shareholder

By Deeq on 14 Feb 2018 in Sales report, Other News

Attached Image Volvo owner Geely will buy more than 6.8% of Mercedes-Benz's parent company Daimler, becoming the company's largest shareholder, according to German publication Bild am Sonntag.

The planned stake is as yet unspecified, but it's likely to exceed the 6.8% stake which the Kuwait Investment Authority holds in the company.

Previous reports from Chinese state media suggested that the Chinese giant would buy 3-5% of Daimler at a cost of USD4.8billion.

The acquisition would make Geely the biggest Daimler shareholder, also overtaking the Renault-Nissan-Mitsubishi Alliance, which owns 3.1%. Currently, 70.7% of Daimler is owned by institutional investors, while 19.4% is owned by private investors. Regarding the reported buying of shares by Geely, a Mercedes-Benz spokesman declined to comment.

Daimler previously rejected an offer by Geely to buy a stake at a reduced rate, but told the Chinese company that it could buy shares in the open market, according to Reuters.

The move is part of an aggressive expansion by Geely, which shot to prominence in Europe after acquiring Volvo in 2010 from Ford and went on to buy The London Taxi Company in 2012. It established the Lynk&Co brand in 2016 and acquired a majority stake in Lotus and almost half of Proton parent company DRB-Hicom this year.

Geely also recently bought the American flying car start-up Terrafugia, with an ambition to launch its first flying vehicle in 2019. It's thought that Geely may be looking into the deal to further its electric car strategy.

An analyst source confirmed that this is likely the case, saying: "With all the disruption in the market and luxury brands across the world working on their future investments in areas like EVs, autonomous vehicles and mobility as a service, the established brands will be regularly courted by new entrants so as to establish brand loyalty in new products (such as electric vehicles) and ensure cost effective use of new technologies.”

geely, daimler, mercedes-benz

Viewed: 1,350 times

Related Blog Posts
Deeq
Written by Deeq
With intense love for cars and bikes since little, and passion for photography, Siddiq tries hard to bring cars to life on the screen, proving his worth as well as his passion for the job.



 
Car Makes

Please select a car make

Facebook Likes
   Featured Blog Post
Photo
Formula 1 has announced grid girls will become a thing of the past after months of debate. The ru...
POPULAR BLOG POSTS
Photo
When the zero-growth policy for the car population kicks in, tens of thousands of households will...
Photo
The Macau Grand Prix takes place on a notoriously difficult street circuit that claims numerous c...
Photo
Well-respected motor journalist Chris Harris takes the Tesla Model S P100D for a spin finally. Wa...
Photo
This 421km/h Nissan 300ZX is up for sale by BH Auction in Japan. Set to go on sale in January, th...
Photo
Subaru will say farewell to its legendary WRX STi after announcing a Final Edition of the current...
   Lifestyle Articles