Cars News Daimler

Daimler AG investment in BAIC Motor passenger car unit

Daimler AG invests further in BAIC Motor passenger car unit. Through the investment, Daimler will now control a 12% stake of BAIC constituted by issuance of shares as also seats for two members on the Board of Directors.

Vertragsunterzeichnung Daimler AG und BAIC Motor, Feb.1,2013Daimler and Beijing Automotive Group (BAIC) have strengthened their ties with Daimler AG deciding to invest in BAIC Motor car unit of BAIC group. Through the investment, Daimler will now control a 12% stake of BAIC constituted by issuance of shares as also seats for two members on the Board of Directors.

Both companies have decided to increase their stake in others companies by 1% to 51% thereby providing a suitable base for the initial public offering. Contract between two companies has been signed with Daimler’s shareholding rights left in balance depending on the outcome of the BAIC board decision.

The investment is the first time an international company has procured stake in a Chinese based original equipment manufacturer. BAIC is one of China’s largest automakers and it had sold over 1.5 million vehicles in 2011.

About the author

Nabanita Singha Roy

Nabanita Singha Roy

Love for a red car has with experience transformed to a detailed outlook for around the clock news from Nabanita Singha Roy. Starting out as auto blogger in 2009, her inextricable editorial approach guarantees diverse storylines for a widely enthusiastic automotive readership.

Email - nabanita@rushlane.com

 
 

Your opinion matters