BAIC of Sinai announced today that it has bought a 5 percent stake in Daimler, according to Reuters news portal Portfolio. Shares from a German car manufacturer have increased sharply after the announcement.
BAIC told Tuesday that it had bought a 5% stake in Daimler, but for how much it has not been disclosed. The two companies do not start to know each other, Daimler Group and the joint venture of BAIC Beijing Benz Automotive Co., Ltd. (BBAC) have for years been producing cars in Asia and are currently building a battery plant in Beijing. BAIC's CEO emphasizes that relocation strengthens the business for Daimler's management and strategy, and German motorists welcome the Chinese business investment.
Besides, Daimler's biggest owner is Geely, also a Chinese car manufacturer. The Geely manager last year, and benefited from German regulatory caves, got a fully uncovered 9.7 percent stake in Daimler via Tenaciou3 Prospect Investment Ltd.