Daimler Seeking To Increase Its Stake In Chinese Partner BAIC

Daimler is investigating the potential of increasing its stake in its Chinese partner BAIC Motor, with Goldman Sachs looking to help the German carmaker with its options.

Reuters cites two people with knowledge of the matter, reporting that discussions between Daimler and BAIC are at an early stage and the plan for increasing the stake in the Chinese company not yet finalized.

Daimler is currently holding 9.55 percent stake in BAIC, which makes them the third largest stakeholder behind the state-owned BAIC Group (42.6 percent) and steel giant Beijing Shougang (12.8 percent).

It’s not yet clear if the German company wants to acquire the majority stake in BAIC, with a Daimler spokesperson declining to comment. Daimler currently owns 49 percent of Beijing Benz Automotive, which is their main Chinese joint venture with BAIC. Daimler has also established a smaller joint venture with BYD locally.

Last October, Daimler announced the creation of a ride-hailing venture in China with Geely Group, which has a 9.69 percent stake in the German manufacturer since early 2018.

According to sources, Daimler also wants to raise the previously-mentioned 49 percent stake in its joint venture with BAIC, although talks between the two companies didn’t amount to anything last year.

China has relaxed its foreign ownership rules last year, with BMW being the first to take advantage by acquiring control of its joint venture with Brilliance.