Geely buys 9.7 % of Daimler in $9B deal


Mercedes-Benz Technology EQ idea, 2016 Paris auto present
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Having simply acquired
Lotus, and a large stake in
Proton, holding firm Zhejiang Geely’s worldwide
shopping for spree doesn’t look to be slowing down but.

Mercedes-Benz mother or father firm Daimler on Saturday confirmed that
Geely, which additionally owns Volvo and Lynk & Co., plus its personal
eponymous automobile model, has acquired 9.69 % of its shares in
a deal valued at $9 billion.

The shares have been bought immediately by Geely’s founder and essential
proprietor, Li Shufu, and means the Chinese language agency is now the one
greatest shareholder of Daimler, forward of the nation of Kuwait
with a 6.eight % stake and the Renault Nissan Mitsubishi
Alliance with a three.1 % stake.

In a press release, Li mentioned he needed to “accompany Daimler” within the
reshaping of the automotive panorama towards one stuffed with
electrical and self-driving automobiles.

He additionally careworn the significance of partnerships between
conventional automakers to fend off what he deemed as “invaders”
to the auto business, particularly the tech and ride-sharing
corporations corresponding to Alphabet, Lyft and Uber.

It has been alleged that Geely is seeking to entry a few of
Daimler’s know-how in addition to to ascertain an electrical automobile
three way partnership in China.

Observe, Daimler has already established an electrical automobile joint
enterprise in China with BYD. Established in 2012, the joint
enterprise is liable for the
electrical automobile model Denza. Daimler additionally on Sunday introduced
that it will make investments $1.88 billion along with China’s BAIC
to improve a plant to construct Mercedes fashions, together with electrical

Reuters in November reported that Daimler had rejected
an supply by Geely to purchase a 5 % stake at a reduction,
a transfer which might have diluted the shares of current
shareholders, however advised Geely it might purchase shares within the open

Geely, like most automakers working in China, is below
strain to launch electrified automobiles, identified regionally as New
Vitality Autos, to satisfy robust new requirements issued by the
authorities. These embrace a goal for electrified automobiles to make
up at the least a fifth of native gross sales by 2025, with a staggered
system of quotas starting as early as 2018. As well as, all
main automakers should supply at the least one electrical automobile on the market
by 2019. The nation can also be contemplating
a complete ban on automobiles powered solely by gasoline or diesel


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