Monday, December 13, 2021
BAIC largest single shareholder
Daimler is almost 20 percent in Chinese hands
The Beijing auto company BAIC has held ten percent more shares in Daimler than previously known. This means that the Stuttgart Dax group is almost 20 percent in the hands of two major Chinese shareholders.
The Chinese car maker BAIC is more powerful at Daimler than previously known. The state-owned company has held a 9.98 percent stake in Stuttgart since 2019. So far, there has only been talk of around 5 percent. Daimler confirmed the share increase. With the higher stake, the Beijing Automotive Industry Corporation (BAIC) overtook the founder of its competitor Geely, Li Shufu, according to previously known figures. According to Daimler, this last held 9.7 percent of the shares, so that the Dax group is almost 20 percent in the hands of two major Chinese shareholders.
Daimler boss Ola Källenius welcomed the latest step: “BAIC’s stake in Daimler reflects our commitment to our joint, successful alliance in production and development in the world’s largest passenger car market.” BAIC had confirmed in an agreement not to increase its stake in Daimler any further. In return, the Stuttgart-based car company has a 9.55 percent stake in the listed BAIC subsidiary BAIC Motor.
Actually, major shareholders only have to report the amount of their holdings if they exceed or fall below certain thresholds in the event of changes. In the case of Daimler and BAIC, the next threshold is 10 percent. The current report was for reasons of transparency after the spin-off of the commercial vehicle division Daimler Truck, it was said in Stuttgart.
BAIC now holds 6.5 percent of Daimler Truck. With a share of around 35 percent of total sales, China has long been the most important market for Mercedes-Benz passenger cars. The Stuttgart-based company opened a new technology center in the Beijing region in October. Over 1000 engineers work there. Daimler and Geely want to bring the small car Smart from Chinese production on the market in the coming year.