Daimler puts its foot on accelerator in mainland
February 3, 2013, 12:08 am TWN
FRANKFURT -- German automaker Daimler unveiled plans Friday to boost its position in the fast-growing Chinese market by acquiring for 640 million euros a 12-percent stake in the country's fifth-biggest car group.
Daimler — which at the end of last year created a new position on its management board dedicated especially to China — said in a statement it had decided to deepen its existing partnership with Beijing Automotive Group (BAIC) by buying a stake in its passenger car unit BAIC Motor.
BAIC is planning to float the subsidiary on the stock exchange and when it does so, Daimler would buy a stake of 12 percent, the German group said.
As part of the agreement, Daimler would receive two seats on the BAIC Motor's board of directors.
At the same time, the two sides would increase their stakes in existing joint ventures, they said.