Daimler bought a 40% stake in the Mercedes Formula One motor racing team, taking its full control.
In March 2009 Aabar purchased 9% stake in the German manufacturer after financial markets collapsed, also acquiring 40% of the Mercedes Formula One team as part of the deal.
Daimler has bought the 40% stake from Abu Dhabi sovereign wealth fund Aabar Investments. The selling of stake was an expected move coming from Aabar, which has cut its ties with Daimler. On October 5th, Aabar’s Abu Dhabi-owned parent International Petroleum Investment sold its last 3.1% holding in the automaker.
Mercedes is the 5th in the 12-team Formula One standings, with a race to go each season until 2020. Next season the automaker will hire former world champion Lewis Hamilton signing with him a three-year-deal for 45 million pounds ($71.3 million). Hamilton, who won on Sunday the US Grand Prix, is expected to bring Mercedes a dash of glamour.
Last month Daimler announced it will not be able to meet its target for this year with about 1 billion euro ($1.27 billion), due to the sluggish European market. In 2011 the Mercedes team reached an annual budget of 125 million pounds, including its own cash reserves, sponsorship and commercial revenues.