• Germany's news in English
 
app_header_v3

Daimler to take stake in China's BAIC Motor

The Local · 1 Feb 2013, 14:14

Published: 01 Feb 2013 14:14 GMT+01:00

"Daimler and Beijing Automotive Group will significantly deepen their already strong strategic partnership," the German group said in a statement.

Under a binding agreement signed by Daimler chief executive Dieter Zetsche and BAIC chairman Xu Heyi in Stuttgart, "Daimler is going to invest in BAIC Motor, the passenger car unit of BAIC Group," the statement said.

"This important joint strategic move comes ahead of an intention by BAIC Motor to launch an initial public offering (IPO) in the future. Daimler's investment will take place through the issuance of new shares corresponding to a twelve percent stake in BAIC Motor," it said.

The purchase of the stake was subject to the approval by the relevant authorities and a closing of the transaction was expected "by the end of this year or early next year."

As part of the agreement, Daimler would receive two seats on the BAIC Motor's board of directors.

BAIC will increase its stake in the production joint venture Beijing Benz Automotive Company (BBAC) to 51 percent from 50 percent.

At the same time, Daimler would increase its stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service also to 51 percent from 50 percent.

"Following our technical cooperation with BAIC Motor and the setup of our integrated sales company, we are now taking the next step in deepening our relationship even further," said Zetsche.

Story continues below…

"Our investment is a strong sign of the increased level of trust and cooperation between our two companies and clearly emphasizes the long-term commitment to a joint successful future of our two companies," he said.

AFP/mry

The Local (news@thelocal.de)

Your comments about this article

15:19 February 1, 2013 by smart2012
here it is: Daimler invests in China and will save in Europe (and btw, two weeks ago they announced that a Chinese group took 10% of Daimler shares)..

do u finally see where the business is going, and even more, where the cars for Asian market will be made? Not for sure in Germany
05:02 February 8, 2013 by honeybeee
The whole Germany car industry is consisted of many very smart car manufactures just like Benz, which is now intergrated with China¦#39;s Baic Moto to increase their own market share in China. The same example is Germany¦#39;s Schaeffler Ag ,a car-parts supplier company .They have been invested in the mainland china since1995. In order to be able to operate successfully, Schaeffler have established an effective international control system which is an integral part of its risk management. Foreign exchange risk is just averted because they have invested many places abroad in India and East Europe as well as in China which is all managed centrally by Schaeffler Corporation. In one word , they are another successful business model in Germany auto field.
Today's headlines
'We'll freeze Turkey talks' warns EU as arrests continue
President Recep Tayyip Erdogan has launched a radical purge against anyone suspected of complicity in the coup attempt. Photo: DPA

As Turkish authorities on Friday widened their sweeping post-coup crackdown to the business sector, the European Union's enlargement commissioner implicitly warned that the bloc would freeze Turkey's accession talks if the crackdown violated the rule of law.

I’m ashamed of Germany’s refugee failure: Green leader
Cem Özdemir. Photo: DPA

The head of the Green Party has responded angrily to Angela Merkel’s speech on refugees on Friday, saying he feels “ashamed at Germany’s failure".

German satirists mock Erdogan (and his penis)
Photo: DPA

Tempting fate?

Huge pro-Erdogan rally puts strain on Turkish community
Erdogan supporters at a rally in 2014. Photo: DPA

Tens of thousands of supporters of Turkish President Recep Tayyip Erdogan plan to rally in Cologne on Sunday, as tensions over Turkey's failed coup have put German authorities on edge.

Opinion
How the Berlin startup scene is wasting its potential
Photo: DPA

"The truth is, there really isn't a truly successful international Berlin startup."

Five years' jail for German darknet weapons dealer
Photo: DPA

He had sold weapons to known Isis-sympathizers and far-right extremists.

Prickly Bavarian calls out cops on hedgehogs' noisy sex
Photo: DPA

Caught in the act.

International or German state school - which one's best?
Photo: DPA

Deciding between sending your child to a German state school or a private international school isn't easy. Max Bringmann has experienced both.

13 mortifying mistakes German learners always make

Sure-fire ways to get off on the wrong foot in the German language.

Captain Schweinsteiger retires from international football
Bastian Schweinsteiger. Photo: DPA

He has won a World Cup with Die Mannschaft and captained them at Euro 2016. On Friday Bastian Schweinsteiger announced his retirement from the national team.

Sponsored Article
Why you should attend an international job fair
Travel
Enter if you dare: Berlin's best abandoned haunts
DPA
Gallery
IN PICTURES: How Munich responded to shooting spree
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
Sponsored Article
Why Swiss hospitality graduates are in demand
National
Bavaria train attack: Were police right to shoot to kill?
Sponsored Article
Five things Americans should know about voting abroad
National
How to get German citizenship (or just stay forever)
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Sponsored Article
Why expats choose international health insurance
Features
Six odd things Germans do in the summer
Travel
These 10 little-known German towns are a must see
Sponsored Article
Health insurance for expats in Germany: a quick guide
Features
How two gay dads cut through German red tape to start a family
National
Five things to know about guns in Germany
Culture
10 things you need to know before attending a German wedding
National
Eight weird habits you'll pick up living in Germany
Sponsored Article
Why Swiss hospitality graduates are in demand
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Society
Only one country likes getting naked on the beach more than Germany
Sponsored Article
Why you should attend an international job fair
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Culture
8 German words that perfectly sum up your 20s
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
10,527
jobs available
Toytown Germany
Germany's English-speaking crowd