Daimler reveals 5% stake by China's BAIC

Tuesday, 23. July 2019 09:24

Daimler AG jumped on Tuesday after announcing that Investment Global Co. Ltd. purchased its equity and options to give the owner, Beijing Automotive Industry Holding Co. Ltd. or BAIC, control over a 5% stake. Chief executive Ola Kaellenius stressed the long-standing partner became a long-term investor and stressed the importance of China's market. Strategic cooperation began in 2003.

The Mercedes maker has 9.55% of BAIC Motor Corp. and 3.01% of BAIC BluePark New Energy Technology Co., manufacturer of electric vehicles formerly known as Beijing Electric Vehicle Co. Ltd. The new investment comprises 2.48% of direct ownership by Beijing Automotive Group Co. Ltd. and a right to acquire additional voting rights equaling 2.52% of the share capital.

The German automotive giant rallied 1.95% at 9:09 am CET to hit €46.94 per share for the first time in a week. The company grew 2.08% so far this year compared to a surge of 17.32% in the benchmark DAX index.

Related Links: BAIC Motor Corporation Ltd.Daimler AG
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