ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business deals

China's Geely becomes top shareholder in Mercedes owner Daimler

$9bn investment aims to generate synergies in luxury and commercial vehicles

Chairman Li Shufu of Zhejiang Geely Holding Group   © Reuters

FRANKFURT -- China's Zhejiang Geely Holding Group is now the top shareholder in German automaker Daimler, the parent of Mercedes Benz, with a 9.69% stake, adding another European auto asset to its growing portfolio.

The shares were purchased on behalf of the Chinese automotive group's chairman, Li Shufu, according to a filing by Daimler, and are worth around $9 billion at current prices. Li has displaced a Kuwaiti sovereign wealth fund as the German automaker's top shareholder.

Daimler in the past has denied reports that it was negotiating an investment deal with Geely, but has said it would not be opposed to the Chinese company buying up shares on the open market. Geely has not commented publicly on the purpose of its investment, but is thought to be interested in Daimler's battery technology.

The Chinese automaker is the owner of Sweden's Volvo Cars and Lotus Cars of the U.K., and in December reached a roughly $3.3 billion agreement making it the largest shareholder in Swedish truck maker AB Volvo. By investing in Daimler, the company is thought to be pursuing synergies in the luxury and commercial vehicle segments.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media