June 29, 2022

Chinese automaking company, Beijing Automotive Group Co Ltd. (BAIC) has announced to maintain its stake of 9.98% in German luxury carmaker, Daimler, and not increase the same that it has held since 2019.
According to the German carmaker, BAIC has mentioned Daimler about its recent decision after the Daimler Truck spinoff on Friday. The statement made by BAIC is their first public confirmation on its stake that has risen significantly from a previously disclosed 5%.
Chinese government owned BAIC for several years now has been Daimler’s foremost partner in the country and operates Mercedes-Benz factories in the capitaly city Beijing via Beijing Benz Automotive.
As per reports the two companies have been known to collaborate in areas such as research and development, production, and sales since 2003.
According to the German financial regulation, the Chinese automaker is required to disclose an increase in a shareholding to public only if it were to raise its stake beyond a 10% threshold.
BAIC’s stake in Daimler Truck became public information after Daimler’s truck division was spun off on Friday, also revealing the size of its Daimler stake.
Daimler shareholders received one Daimler Truck share for every two Daimler shares in the latter’s spin-off.
According to a Daimler spokesperson, BAIC as of Friday has received shares in Daimler Truck Holding AG, in relation to their stake in Daimler AG. While BAIC has informed the former about the size of their current stake in the company.
The Chinese automaker has not been under obligation to disclose the full extent of their holding before today.
According to Daimler’s CEO, Ola Kaellenius, he welcomed BAIC’s stake size information by mentioning that they are happy about the engagement of all long-term oriented shareholders.
The German automaker mentioned to hold a 2.46% stake in BAIC BluePark and a 9.55% stake in BAIC Motor.
BAIC on the stake figure news mentioned that the partnership between Daimler and themselves has always been a model of Sino-German cooperation. It also seemed to be confident in Mercedes-Benz’s potential to transform to electro-mobility in the near future.