Chinese state-owned automotive group Beijing Automotive Group Co. (BAIC) has received a 5% share in the German automobile company Daimler, whose largest shareholder is the Chinese rival Geely last year, said Daimler on Tuesday.
Daimler, a Mercedes-Benz brand, has a long history of collaborating with BAIC in China and has previously allowed its purchase of Chinese stocks.
"We are pleased that our long-term partner BAIC is now a long-term investor in Daimler," said Ola Kellenius, CEO of the German company.
Both companies have been producing Daimler cars in China for several years, and Daimler owns less than 10% of BAIC's subsidiary, BAIC Motor, which is listed on the Hong Kong Stock Exchange.
Last year, Li Shufu, owner of Geely, took over almost 10% of Daimler. Owned by "Swedish car manufacturer Volvo Cars".
BAIC will now be the third largest shareholder behind Geely, which has a 9.69% stake in Daimler. The second largest shareholder is the Kuwait State Investment Fund, which holds around 7% of the shares.
Previously, the third largest shareholder in Daimler was the Renault-Nissan car dealership.
Last year, Daimler announced that it would invest $ 1.5 billion with BAIC in the next generation Mercedes-Benz electric car assembly plant, although German motorist is also developing electric cars with Geely.
In March, Daimler and Geely unveiled plans to produce the next generation of electric cars, Smart, one of Daimler's brands in China.
Daimler shares are listed on the Frankfurt Stock Exchange.
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