China’s BAIC seeks to buy 5% Daimler stake


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China’s BAIC seeks to buy 5% Daimler stake

The state-controlled BAIC Group of China, headquartered in Beijing and officially known as the Beijing Automotive Industry Holding Ltd., had been exploring potential options of buying a stake of as much as 5 percent on German automaker Daimler, as a move to secure its investment in Beijing Benz Automotive, a Chinese manufacturer of Mercedes-Benz, at least three people familiar with the subject matter had unveiled on Saturday, the 11th of May 2019.

Besides, two of the three sources with knowledge regarding the issue had been quoted saying that the Chinese State-Controlled manufacturer of auto parts, BAIC had already informed its intention of purchasing up to 4 to 5 percent stake of German luxury carmaker Daimler AG earlier this year, while BAIC had also asked for financial aid from the Chinese government over the stake purchase.

Apart from that, one of the sources had added that the Beijing-based BAIC had begun to acquire Daimler shares on the public market, while a person familiar with the matter had been quoted saying that the Daimler AG’s stock price remained well-support over the recent past, as there had been a specific buyer who appeared to be aiming to build up a stake. Followed by the reveal of the report, neither Daimler nor BAIC had responded while being asked for comments.