• Follow us

Automotive

China's BAIC seeks to buy 5% Daimler stake, report says

China's BAIC Group is seeking to buy a stake of up to 5 percent in Daimler AG as a way to secure its investment in Beijing Benz Automotive, the two automakers' Chinese joint venture, three sources familiar with the matter told Reuters.

BAIC informed Daimler of its intention to buy a 4-5 percent stake in the German maker of Mercedes-Benz cars earlier this year, two of the three sources said.

BAIC has asked local authorities in Beijing to support a stake purchase, two of these sources said.

BAIC has started acquiring Daimler shares on the open market, one source said.

"Daimler's share price is currently being underpinned by a buyer who appears to be building a stake," a person familiar with the matter said.

BAIC did not respond to repeated phone calls and text messages seeking comment outside regular business hours. Daimler declined to comment.

It remains unclear whether BAIC Group can raise the nearly $3.4 billion that a 5 percent stake in Daimler would cost, based on the German automaker's closing market value on Friday of $65 billion, two of these sources said.

German regulatory filings do not show BAIC as a significant shareholder of Daimler. German takeover rules allow a buyer to acquire a stake of up to 3 percent before a regulatory disclosure is required.

Daimler has ruled out issuing new stock to help an outside party build a stake, forcing potential buyers to acquire shares on the market.

BAIC signaled its interest in buying a Daimler stake as far back as 2015, and has redoubled its effort after Li Shufu, chairman of rival Chinese carmaker Zhejiang Geely Holding Group, built a 9.69 percent stake in Stuttgart-based Daimler in early 2018.

By using Hong Kong shell companies, derivatives, bank financing and structured share options, Li kept the plan under wraps until he was able, at a stroke, to become Daimler's single largest shareholder.

Daimler in March agreed to build the next generation of Smart-branded city cars together with Geely, which is based in Hangzhou.

Daimler has also reassured BAIC that any new industrial alliances involving Mercedes and a Chinese partner would only happen after a consensus is found with BAIC.

Read More



Leave A Comment

More News

WIRED

GM's Big Upgrade, ‘Game of Thrones’' Unsatisfying End, 2019-05-20 19:50:47Catch up on the most important news from today in two minutes or less.

GM Gives All Its Vehicles a New Soul 2019-05-20 10:30:00GM's new "electronic platform" offers five times the bandwidth and compute power of its predecessor, to deliver better maps and new accessories.

Want to Bike Cross-Country? Some Old Rails Could 2019-05-19 07:00:00The Rails to Trails Conservancy is trying to assemble a 3,700-mile route that crosses 12 states. It needs help in Wyoming.

Another Fatal Tesla Autopilot Crash and More Car 2019-05-19 07:00:00The NTSB said a Tesla Model 3 had its Autopilot engaged when it collided with a truck in Florida in March, killing the driver.

Building a Bus Map When There Are No 2019-05-18 07:00:00Citizen groups in Beirut, Nairobi, Cairo and other cities are crowdsourcing maps of informal bus networks to encourage transit use.

A Fatal Tesla Autopilot Crash, Rising Methane Levels, 2019-05-16 18:33:42Catch up on the most important news today in two minutes or less.

Tesla’s Latest Autopilot Death Looks Just Like a 2019-05-16 17:46:31A Florida man was killed March 1 when his Tesla collided with a tractor trailer that was crossing its path. A government report says the Autopilot fea

Lilium's 36-Motor Flying Taxi Takes Off for the 2019-05-16 03:01:00The latest aircraft vying for a piece of the not-quite-realized aeromobility space takes a big step toward becoming a reality.

VW Will Make Its Own Batteries to Power 2019-05-15 17:53:18The German automaker plans 70 electric models by 2028. So it's building a gigafactory to ensure it has enough batteries.

Daimler Plans to Make Its Cars Carbon Neutral 2019-05-14 08:00:00The carmaker's new climate plan is bold—for a company. But it falls short of recommended emissions cuts and shows the limits of corporate self-

Why Uber Is Fighting Cities Over Data About 2019-05-13 07:00:00Los Angeles and other cities want detailed data on the shared scooters on their streets. Uber, Lyft and other companies fear a Trojan horse that could

Uber's Underwhelming IPO, Lyft Earnings and More Car 2019-05-12 09:00:00A decade after it was founded, Uber went public. Its shares fell almost 8% on their first day of trading.

Automotive News Breaking

BMW CEO's future in doubt as board tensions 2019-05-21 15:09:33Some BMW supervisory board members are raising questions over whether Harald Krueger is the right choice to lead the company and will discuss the CEO&

FCA land swap deal, incentives approved by state, 2019-05-21 14:38:27Detroit City Council and the Michigan Strategic Fund's board voted separately on the incentives packages tied to FCA's creation of more than 6,000 j

Japan auto group 'profoundly disappointed' by Trump's import 2019-05-21 12:13:31The comments are unusually strong for Japanese industry and reflect growing concern that President Trump may trigger an all-out trade war ahead of U.S

Senators urge VW to end delay of UAW 2019-05-21 11:40:59This month, the largest German automaker won its bid to put off a union election for 1,700 workers at the Chattanooga plant until its challenge t

Tesla's bullish analysts turn bearish 2019-05-21 10:50:33A sell-off of Tesla shares sparked by slowing deliveries and a chaotic shift in retailing strategy early this year has accelerated this mont

Veoneer will sell $500 million of bonds, equity 2019-05-21 09:44:39Swedish supplier Veoneer plans to shore up its working capital by $500 million through the sale of bonds and shares, as it waits for a strong order bo

VW outlines launch plans for first member of 2019-05-21 06:00:10Volkswagen brand is getting ready to launch the first of a new lineup of electric vehicles, the ID3 hatchback. Automotive News Europe spoke with the b

Postal service to test automated delivery between 2 2019-05-21 06:00:00The U.S. Postal Service is partnering with autonomous truck company TuSimple on a two-week pilot project that will automate trips between distribution

A degree in mobility? It will soon be 2019-05-21 00:01:00The Michigan Mobility Institute, formed this year to enhance the state's work force, is partnering with Wayne State University in Detroit to develop

GM's Maven, citing strategy shift, pulls out of 2019-05-20 16:26:55Maven, the mobility brand operated by GM, said its car-sharing service will remain in operation in Detroit and Los Angeles while it discontinues opera

GM's Maven pulls out of Chicago, New York 2019-05-20 16:26:55Maven, the mobility brand operated by GM, said its car-sharing service will remain in operation in Detroit and Los Angeles while it discontinues opera

Daimler to cut administration costs by 20%, report 2019-05-20 15:22:07Incoming boss Ola Kaellenius is working on a cost-cutting program, dubbed "Move," to reach profit margin targets threatened by trade talks and produ

Motor Trend

2020 Porsche Cayenne Coupe First Drive: Porsche’s Sportiest 2019-05-20 18:01:15Better late than never. Years after its German rivals launched cut-down versions of their mainstream SUVs, Porsche has finally got around to building

15 Cars That Won’t Disappoint You Like the 2019-05-20 17:38:02Like a lot of other people, we were pretty disappointed with the Game of Thrones finale. Half the things that happened made no sense, many of the

The Cheapest New SUVs You Can Buy in 2019-05-20 16:45:36It’s no secret that SUVs have gotten expensive, especially if you want the latest features and technology. A fully loaded Honda CR-V, for exampl

15 of the Best SUVs for Your Summer 2019-05-20 14:00:03Summer is here, which means it’s time to hit the road and get away from it all. An SUV is a good choice for road trips because they’re sup

Why the 2020 Lexus RC F Track Edition 2019-05-20 07:00:22When it first debuted, the Lexus RC was criticized for weighing two tons even in its more pedestrian versions. Thanks to a platform that utilizes part

2019 Toyota 86 TRD First Drive: Fair ’n‘ 2019-05-20 04:00:52Toyota Racing Development has prepared a special TRD edition of the 2019 Toyota 86. Don’t get excited, though: The upgrades are visual and chass

The 15 Smallest SUVs Currently on Sale 2019-05-20 04:00:41This segment didn’t really exist 10 years ago. As sedans and hatchbacks fall victim to the mighty force that is crossover fever, manufacturers c

2019 Acura RDX: 7 Design Details to Notice 2019-05-20 04:00:23Did your car’s design feel less special after months behind the wheel? Well, I can’t say the same for our 2019 Acura RDX, a MotorTrend lon

This 1995 Toyota Supra Makes 1,800 HP, Runs 2019-05-20 04:00:11Geovannie Castillo's 1995 Toyota Supra is making 1,800hp with stock heads and block, running 60 pinds of boost and spraying methanol! The post This 1

These are the Best Car Deals This Memorial 2019-05-20 04:00:05Memorial Day is one of the biggest car-shopping weekends of the year. Folks will have their tax-refund checks deposited, the weather is getting nice,

The Ford Focus ST Wagon and 8 Other 2019-05-19 04:00:36Ford just unveiled the second generation of the Focus ST Wagon, and unless you live outside the confines of the United States, you can’t have it

Tesla Model Y Styling Breakdown: A Designer’s Take 2019-05-18 04:00:20Elon Musk’s master plan has always had the Model 3 circled in fat red ink as Tesla’s mega-selling, do-or-die affordable car. But since the

Automotive news - from

Indonesia market decline steepens in April 2019-05-21 09:44:00The Indonesian new vehicle market deteriorated further in April 2019 as sales plunged by over 17.8% to 84,029 units from 102,258 units a year earlier,

British Steel on brink of collapse - reports 2019-05-21 08:39:00Britain's second-largest steel producer is on the brink of collapse, UK news reports said on Tuesday (21 May).

Millbrook expands ADAS and connected/autonomous test facilities 2019-05-21 07:59:00Millbrook, the Bedfordshire vehicle testing facility originally built in the late 1960s as the Vauxhalll Proving Ground, announced it now offers new f

Toyota may not benefit from hybrid patent release 2019-05-21 07:47:00Moody's Japan reckons the release by Toyota Motor of its hybrid vehicle technology patents could increase demand for full hybrids but the r

Mahle expands thermal management portfolio 2019-05-21 07:45:00Following the acquisition of the entire shareholding in Behr Hella Service (BHS) by Mahle Aftermarket, all existing activities of BHS will be transfer

Jaguar Land Rover names new CFO 2019-05-21 07:44:00Jaguar Land Rover (JLR) announced that Ken Gregor, chief financial officer (CFO), has decided to step down on 1 June 2019 after 22 years with the busi

Honda mulls network of used EV batteries 2019-05-21 07:42:00Honda is carrying out research with Ohio-based, American Electric Power (AEP) to develop a network of used EV batteries, which could be inte

Delphi develops 500+ bar GDi system which reduces 2019-05-21 07:40:00In a paper presented at the 2019 Vienna Motor Symposium, Delphi Technologies has revealed a new 500+ bar GDi system that it claims can reduce particul

Vulog and Renault team on car sharing 2019-05-21 07:40:00Vulog and Renault are collaborating to manufacture car-sharing vehicles, starting immediately.

Ford to duck China tariffs and costs with 2019-05-21 06:58:00Ford plans to produce new Lincoln models in China to save on costs and avoid local tariffs.

Michelin to acquire Masternaut 2019-05-21 06:57:00Michelin has signed an agreement to acquire the entire share capital of Masternaut, one of Europe's largest telematics providers.

Malaysia sales up again in April 2019-05-21 05:19:00Malaysia's new vehicle market continued to expand in April 2019, by 6.2% to 49,964 units from 47,047 units in the same month of last year, according


Disclaimer and Notice:WorldProNews.com is not responsible of these news or any information published on this website.