Geely Holding bought a serious stake in Mercedes-Benz
The Chinese automobile company Geely Holding Group has bought a serious stake in the German automaker Mercedes-Benz in an effort to advance its alliance with Daimler to develop its electric vehicle technology. The exact size of the purchased Mercedes-Benz shares is not reported, but analysts say it is about 3%.
Daimler’s largest shareholders are currently: Blackrock (5.95%), Kuwait Investment Fund (5.33%) and the Renault-Nissan Alliance (3.1%).
In 2010 the Chinese company acquired from Ford the Swedish manufacturer of passenger cars Volvo and the producer of London taxis.
“Geely has made the purchase to prove its intentions and impress Daimler’s leadership that do not give up from its intentions”, said the source close to the Chinese automobile company.
The price of Daimler stocks fell by 2% to 69.31 EUR per share. A spokesman for the Chinese company refuses to comment on the deal.
Daimler has announced that it is interested in long-term investors and will announce significant changes in the structure of the owners of shares on its official website.
Geely’s is seeking access to Daimler’s battery technology and wants to establish a joint venture with the Germans in Wuhan. Chinese manufacturers are under pressure from the government to increase their production of fully electric and hybrid models. The pressure is in the form of introducing mandatory quotas for the production of cars in the Underwater Empire, dedicated to electrified cars. This is the result of a policy to reduce the air pollution of large cities by cars and to reduce the country’s dependence on imported fuel.
Geely hopes that Daimler will see the benefits of partnership to increase the production of electric components for cars. The Germans have so far been told that they do not need another industrial partner in China except BAIC Motor Corp.