Daimler

Daimler forges closer ties with BAIC

Daimler takes an $820 million stake in China’s BAIC Motor ahead of a future IPO.
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China is the fifth-biggest sales market for Mercedes-Benz trucks
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<div style="text-align: left;"> China is the fifth-biggest sales market for Mercedes-Benz trucks </div>

Daimler has changed the structure of its strategic partnership with Beijing Automotive Group BAIC ahead of an expected initial public offering of its passenger-car unit.

According to a person familiar with the deal, which was agreed on February 1, Daimler is going to invest Rmb5.13 billion $820 million for a 12% stake in BAIC Motor. It is the first time that a non-Chinese car company has taken a stake in a Chinese original equipment manufacturer.

Daimler’s investment will take place through the issuance of new shares. Concurrently, Daimler will reduce its stake in the production joint venture Beijing Benz Automotive Company BBAC by 1% to 49%, passing...

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