Geely plans to buy Daimler stake

Geely plans to buy Daimler stake

Chinese car giant previously offered to acquire the share at a reduced rate and was rejected by Daimler

Volvo owner Geely will buy 3-5% of Mercedes-Benz’s parent company at a cost of £3.52 billion, according to Chinese state media. 

The acquisition would make Geely the third-biggest Daimler shareholder, overtaking the RenaultNissanMitsubishi Alliance, which owns 3.1%. Currently, 70.7% of Daimler is owned by institutional investors, while 19.4% is owned by private investors. Kuwait holds a 6.8% stake. 

Daimler previously rejected an offer by Geely to buy a stake at a reduced rate, but told the Chinese company that it could buy shares in the open market, according to Reuters.

The move is part of an aggressive expansion by Geely, which shot to prominence in Europe after acquiring Volvo in 2010 from Ford and went on to buy The London Taxi Company in 2012. It established the Lynk&Co brand in 2016 and acquired a majority stake in Lotus and almost half of Proton parent company DRB-Hicom this year. 

Geely also recently bought the American flying car start-up Terrafugia, with an ambition to launch its first flying vehicle in 2019. 

Read more: 

Chinese car maker Geely buys majority stake in Lotus

Lotus owner Geely plans SUV and cars to rival Ferrari

Lotus CEO: sports car production stays in Norfolk; SUV could go elsewhere

Terrafugia aims to launch flying car in 2019 following takeover by Geely

Lynk&Co 01 receives 6000 orders in 137 seconds

Source: Autocar Online

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