82571
Geely chief Li Shufu is Daimler’s biggest shareholder.
Geely chief Li Shufu is Daimler’s biggest shareholder.

Geely Covets Daimler Tech With $9 Billion Stake, Shares Surge

Geely Covets Daimler Tech With $9 Billion Stake, Shares Surge

Geely Automobile Holdings Ltd’s shares jumped on Monday after its chairman Li Shufu revealed he had built a $9 billion stake in Daimler AG, gaining leverage as he tries to convince the German carmaker to cooperate on technology.
The 9.7% holding makes Li Daimler’s biggest shareholder and gives him a leg up to the negotiating table after the Mercedes-Benz owner knocked back a request from Geely late last year to issue new shares so it could buy a stake, Reuters reported.
Li, 54, is expected to meet Daimler executives in Stuttgart on Monday and hopes to meet top German officials in Berlin.
But even so, gaining access to Daimler’s technologies in areas such as autonomous driving and electric vehicles is not expected to be an easy task, particularly as Daimler already has a thriving joint venture partnership in China with BAIC Motor Corporation.
“It’s one thing to be an investor, a significant investor, but it’s another to be an alliance partner,” said James Chao, Asia-Pacific chief of consultancy IHS Markit Automotive.
“I think this is the start of a process of negotiations to get something hammered out... Whether or not it will work, we’ll see.”
Geely Auto’s stock surged 7% on Monday, giving it a market value of some $29 billion, as investors cheered the Geely group’s efforts to forge an alliance with Daimler. Shares in Daimler edged 0.6% lower in early trade.
Li, who founded Zhejiang Geely Holding Group - the parent firm of the group - in 1986, said on Saturday that alliances were necessary to respond to the challenge from “invaders” in the global auto market, a reference to firms such as Tesla, Google and Uber.

Short URL : https://goo.gl/A1AJ44
  1. https://goo.gl/cHeuEm
  • https://goo.gl/YZfHQA
  • https://goo.gl/TkpLtG
  • https://goo.gl/bFtGZf
  • https://goo.gl/qKtM1d

You can also read ...

Over 9.7 billion shares valued at $498.4 million were traded on TSE during last month.
Coming out of a relatively good year, Tehran stocks had a...
Flat Steel Import Slows on Currency Rate Issues
Flat steel import trade in Iran has been almost non-existent...
Alibaba Acquires Chipmaker C-SKY Microsystems
Chinese e-commerce firm Alibaba Group Holding Ltd has acquired...
Iran’s Largest Holding Seeks Gov’t Help to Finance Delayed Projects
Iran’s largest holding, the financially troubled Social...
New Credit Card Scheme  to Support Local Products
Iran’s banking system is now preparing a new credit card...
50 Female Pilots Apply to Join Iran Air
About 50 female pilots are to take part in Iran Air’s upcoming...
Rail freight transportation stood at a record high of 46 million tons during March 2017-18.
Around 24.45 million passengers were transported by Iran’s...
Revised Rules for Private Bank Ownership Ratified
Lawmakers have revised regulations for the ownership of non-...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus