Fight for the largest shareholder! BAIC wants to increase its stake in Daimler to 9.9%

SMM: recently, there are media reports that BAIC plans to increase its stake in Daimler Group by buying shares in the secondary market, with a total shareholding of 9.99%, surpassing Geely to become Daimler's largest shareholder. Before that, Geely took the lead in BAIC, taking the lead in buying a 9.69% stake in Daimler and becoming Daimler's largest single shareholder.

In fact, BAIC and Daimler have always coveted each other's stakes.

As early as July 2019, BAIC bought a 5 per cent stake in Daimler for 20 billion yuan, making it its third-largest shareholder. In exchange, BAIC will also give up its stake in Beijing Mercedes-Benz.

A few days ago, it was reported that Daimler was preparing to restart negotiations with BAIC to take a 16 per cent stake from BAIC in order to increase its share ratio in Beijing Mercedes-Benz from 49 per cent to 65 per cent.

In the second quarter of this year, China was the only market in which Daimler achieved year-on-year revenue growth, and China is now its well-deserved profit cow. At the same time, Beijing Mercedes-Benz is also a major profit contributor to BAIC, with a loss of 1.835 billion yuan in its independent business in the first half of the year, while Beijing Mercedes-Benz's net profit is as high as 20 billion yuan. From this point of view, Daimler's news of increasing its stake in Beijing Mercedes-Benz is not groundless.

On the other hand, in terms of sales, Galaxy data show that Beijing Mercedes-Benz sold 57000 vehicles in July, with a cumulative sales of 327100 from January to July.

At present, Beijing Automobile Co., Ltd. (BAIC), Daimler AG and its wholly-owned subsidiary Daimler Greater China Investment Co., Ltd. hold 51%, 38.66% and 10.34% shares of Beijing Mercedes-Benz Motor Co., respectively. That is, the share ratio of BAIC to Daimler is 51:49.

Beijing Mercedes-Benz equity relationship chart; picture source, Sky Eye check screenshot

"Click to understand and sign up: 2020 China Automotive New Materials Application Summit Forum

Scan the QR code above to view the business cards of the participating companies and sign up online

Scan the code and apply to join the SMM Automotive Industry Exchange Group.