Arabic AR Chinese (Simplified) ZH-CN English EN French FR German DE Japanese JA Portuguese PT Russian RU Spanish ES Ukrainian UK

Berlin ‘aware’ of Geely buying stake in Mercedes maker

Latest news

    2019 Mercedes-Benz G- North American International Auto Show, January 14, 2018 in Detroit, Michigan [Photo/Scott Olson/Getty Images/AFP]

    Daimler and its Chinese partner BAIC plan to invest almost $2bn in a state-of-the-art factory in China, underlining their relationship as rival Geely makes a surprise swoop on the German carmaker.

    The two will invest more than 11.9 billion yuan ($1.88bn) in modernizing a plant to build premium Mercedes-Benz cars including electric vehicles, BAIC said in a filing to the Hong Kong Stock Exchange dated Friday and confirmed by Daimler on Sunday.

    The chairman of Chinese carmaker Geely said late on Friday he had bought an almost 10 percent stake in Daimler, in a $9bn bet to access the Mercedes-Benz owner’s technology.

    The move poses a challenge to Daimler, which, in addition to its Chinese partnership with BAIC Motor Corporation, has an industrial alliance to develop cars and trucks with Renault-Nissan, which owns a 3.1 percent stake in Daimler.

    Geely’s Chairman Li Shufu, who quietly built up the 9.7 percent stake, is now expected to meet Daimler executives in Stuttgart on Monday, and hopes to meet top German government officials in Berlin.

    His approach contrasts with that of previous Chinese investors in German technology companies – such as Midea, which bought Kuka, or Weichai, which bought a large stake in Kion – who have tended to engage in lengthy consultation with stakeholders.

    Berlin said it saw no need to take any action over Geely’s purchase, either in terms of competition rules or foreign investment rules.

    “It is a company decision,” a government spokesman said. “Due to the character of the investment as a minority stake, there is no need to act.”

    The government declined to comment on a report in German tabloid Bild am Sonnntag that Li would visit the German chancellery for a “secret meeting” with Angela Merkel’s economic adviser on Tuesday.

    Daimler also declined to comment on any possible meetings with Li.

    Geely said it wants an alliance with Daimler, which is developing electric and self-driving vehicles and is the only German carmaker not to be controlled by a family, to respond to the challenge from new rivals such as Tesla and Uber.

    View the original article: http://www.aljazeera.com/news/2018/02/berlin-aware-geely-buying-stake-mercedes-maker-180225140717825.html

    SOURCE: Reuters news agency

    In the same category are

    Rights groups demand release of Saudi women driving activists A royal decree issued last year announced that women would be allowed to drive in 2018 Human rights groups have called on Saudi Arabia to release w...
    Egypt army intensifies Sinai home demolitions: HWR The Egyptian army is waging a campaign in the area against a group affiliated with ISIL A rights group has accused the Egyptian army of unlawfully ...
    Palestine after the May 14 massacre A wounded Palestinian demonstrator is evacuated as others take cover from Israeli fire and tear gas in the southern Gaza Strip on May 14, 2018 The ...
    Palestine submits ICC referral to open probe into ‘Israel crimes’ Palestinian Foreign Minister Riyad al-Maliki held a news conference at the International Criminal Court For the first time, the Palestinian governm...
    Sri Lanka: Severe monsoon thunderstorms kill five Violent storms have killed at least five people in Sri Lanka, the country’s Disaster Management Centre (DMC) said. Lightning killed three people, a l...
    Guinea: Ibrahima Fofana named new PM amid political tensions Deadly riots broke out in Conakry and other cities after local elections were allegedly marred by fraud Guinea President Alpha Conde has named Ibra...

    Leave a comment

    Your email address will not be published. Required fields are marked *