Daimler to ink final agreement to buy 12% of Beijing Auto unit

Article by Anita Panait, on November 19, 2013

Daimler will ink a final deal to acquire a 12-percent stake in Beijing Automotive Group Co.'s passenger-car unit on November 19, 2013. Beijing Auto is Daimler’s joint-venture partner in China. According to Beijing Auto chairman Xu Heyi, Daimler will sign the purchase agreement at the Beijing local government.

According to Daimler spokesman Hendrik Sackmann, both companies were "progressing well" and that the German carmaker will communicate more when the contracts are signed. Daimler earlier disclosed that it will receive two seats on the BAIC board as part of the deal, which also entails allowing the Chinese carmaker to build cars underpinned by platforms used to build Mercedes-Benz vehicles.

BAIC will also hike its ownership in a production joint venture to 51 percent from the current 50 percent. The Daimler-Beijing Auto’s joint venture recently commenced output at the first Mercedes passenger-car engine site outside of Germany in Beijing.

Xu remarked that Beijing Auto may "soon" invest in Daimler, depending on the market situation and the availability of funds. The deal with Daimler opens the way for BAIC to launch an initial public offering. It has already tapped investment banks like Goldman Sachs Group and UBS for the IPO, which could occur probably in Hong Kong, according to Xu.

The growth of Daimler’s Mercedes unit in China had been impeded by a distribution structure that divided deliveries of locally made and imported vehicles. To solve this, Mercedes combined the sales units in December 2012. Daimler disclosed in August 2013 that it will spend EUR2 billion ($2.7 billion) to double local production to over 200,000 vehicles.

Topics: daimler

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries