China's BAIC in talks to take Daimler stake, report says
FRANKFURT (Reuters) -- Chinese automaker BAIC Motor is in discussions with Daimler about getting a position in the German luxury car-maker, two sources with knowledge of the issue told Reuters.
Daimler currently possesses a 10% stake in BAIC, the Hong Kong listed unit of China's Beijing Automotive Group (BAIC) and discussions on BAIC's investing in the German car-maker are continuing, the resources stated.
If negotiations are productive, BAIC is going to function as the third Chinese auto-maker to buy foreign automobile maker, after Dongfeng Team took a position in PSA/Peugeot Citroen and SAIC Motor purchased shares in Gm.
Recently, Daimler and BAIC have formed joint ventures in China to manage creation and sales of Mercedes Benz passenger vehicles on the planet 's biggest auto market.
Taiwan's Desire China Times noted that BAIC chairman Xu Heyi had verified on Monday that the two sides were in negotiations and that he anticipated an outcome by the end-of the entire year.
If your deal is finished BAIC will become one of Daimler's leading investors, the Desire China Times noted.
Now Kuwait's investment authority is Daimler's largest single investor having a position of 6.8%, accompanied by by Renault Nissan with 3.1%.
Daimler on Thursday indicated it was open to welcoming new long term investors from China. "BAIC is our most significant partner in China," Daimler stated. "Normally speaking we need to stay appealing for long term traders. Investors from China are also welcome."
Ties involving the 2 have deepened lately. In December 2013, BAIC took a 51% stake in a China-centered production joint venture with Daimler, while the German auto-maker took a 51% stake in a China-centered revenue partnership.
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