China’s BAIC Group is seeking to buy a stake of up to 5 per cent in Daimler in a move to secure its investment in Chinese Mercedes-Benz manufacturing company Beijing Benz Automotive, reported Reuters citing sources familiar with the matter.
BAIC informed Daimler of its intention to buy a 4-5 per cent stake in the German maker of Mercedes-Benz cars earlier this year and it has asked local authorities in Beijing to support the purchase, according to the report.
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.”
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.