Carmaker Daimler AG expressed its openness to welcome new long-term Chinese shareholders after a media report announced that Chinese automaker BAIC Motor was interested in purchasing a stake from the German automotive company.
After the Beijing car manufacturer stated it was looking into investing in a major stake at Daimler, the latter announced that while it is content with its current shareholder structure, it is open for new additions in the form of long-term investors.
The carmaker stated “BAIC is our most important partner in China. Generally speaking, we want to remain attractive for long term investors. Investors from China are also welcome.”
After a 3.4% increase in its shares, Daimler reached €72.55 outperforming a 2.9% growth in the Deutsche Boerse AG German Stock Index.
Daimler and BAIC already have a strong strategic partnership as Daimler owns a 10% stake in BAIC Motor – Hong-Kong listed passenger car unit of state-owned Beijing Automotive Group. Moreover, BAIC purchased a 51% stake in a China-based manufacturing joint venture with Daimler at the end of 2013, while the German automaker acquired a 51% stake in a Chinese sales joint venture. Renault-Nissan (RENA.PA) is currently Daimler’s largest shareholder in China, with a 3.1 % stake, while Kuwait owns 6.8%.
Due to a really slow demand in truck sales in Brazil, Daimler AG recently announced it would cut another 1,500 jobs at its Sao Bernardo do Campo division. For the past two years, Daimler has eliminated 3,000 jobs in Brazil, minimizing its force in the Latin America country to 11,854 employees. The company has around 280,000 people working for it across the Globe.