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China’s Geely Buys $9 Billion Daimler Stake
China’s Geely Buys $9 Billion Daimler Stake

China’s Geely Buys $9 Billion Daimler Stake

China’s Geely Buys $9 Billion Daimler Stake

The founder of Zhejiang Geely Holding Group Co. has accumulated a stake worth about €7.3 billion ($9 billion) in Daimler AG, marking the biggest investment in a global automobile manufacturer by a Chinese company, Bloomberg reported. Li Shufu acquired the 9.7% holding through Geely Group, a company owned by the billionaire and managed by his carmaking group, according to a company statement Saturday. Bloomberg News first reported that Geely has become the single largest investor in the parent of Mercedes-Benz by building up a position of just under 10% through purchases in the stock market in recent weeks. The investment furthers Hangzhou-based Geely’s foray into the European premium automotive market and ends months of speculation about a tie-up. The Chinese company already owns Volvo Cars AB, whose refreshed line-up of vehicles have made it a popular alternative to the German luxury stalwarts. “A Geely stake in Daimler would underscore their push for cooperation that’ll help them get more expertise, like electric cars,” said Frank Biller, a Stuttgart-based analyst with Landesbank Baden-Wuerttemberg. “At the same time, this opens another path into China for Daimler.”

 

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