The Beijing-based BAIC Automotive Group Co. has purchased a stake in Germany’s Daimler AG, which owns Mercedes-Benz, the Chinese state-owned carmaker announced Tuesday.
The investment aims to strengthen the long-term strategic cooperation between the two companies, BAIC said. The stake includes a 2.48% direct holding, the right to purchase a further 2.52%, and voting rights.
In 2005, BAIC and Daimler established Beijing Benz, a joint venture that manufactures Mercedes-Benz automobiles in China. Since 2013, Daimler has owned shares in BAIC’s Hong Kong-listed subsidiary, BAIC Motor Corp. Ltd., where the German company sits on the board of directors.