Chinese billionaire Li Shufu buys biggest single stake in Daimler

25 February, 2018, 00:34 | Author: Tracy Craig
  • An employee holds a Mercedes Benz badge on the assembly line at the automaker's factory in Bremen Germany

With revenue exceeding RMB 270 billion (about Dollars 43 billion) in 2017, the Zhejiang Geely Holding Group is China's largest privately owned automotive manufacturing company and one of the world's leading providers of electro-mobility.

Li, who chairs auto giant Geely Automobile Holdings, bought a 9.69% stake in the carmaker, worth around 7.2 billion euros (RM34.8 billion), according to the filing.

Geely, which already owns Volvo Cars and Lotus, has built up a 9.69 per cent stake in Daimler, the German carmaker said in a filing late on Friday.

Kuwait's sovereign wealth fund, which has been an investor in Daimler for decades, was the largest stakeholder in the automaker as of the end of December with a 6.8 per cent holding.

Geely's investment arrives as Daimler begins moving away from a classic German conglomerate model that shareholders complain is too rigid. It issued a statement saying it was pleased with the investment.

"Daimler is an outstanding company with a first-class management".

Geely said on Saturday (Feb 24) there were no plans "for the time being" to raise the stake further.

Trump defends NRA amid gun law debate
National Education Association President Lily Eskelsen Garcia said bringing more guns into schools would not make them safer. He said it would take too many security guards to protect a school campus. "That's good", he said.

Geely Holdings chairman Li Shufu speaks at a business forum in Shanghai earlier this month.

Daimler and other automakers are scrambling to develop electric vehicles to comply with increasingly stringent emissions standards that will take effect in China and Europe in the coming years.

Geely's expansion comes only weeks after a $3.9bn move to become the biggest shareholder in truckmaker Volvo AB.

Geely Group owns one of China's largest car-sharing providers, Cao Cao (100 percent), operating a fleet of around 16.000 electric vehicles worldwide.

"Chinese companies understand that leading European firms lean heavily on the People's Republic for sales and profits", said Michael Dunne, president of Dunne Automotive, a Hong Kong-based investment advisory firm focusing on automotive markets in Asia.

Global motor manufacturers are seeking to strike deals in China, the world's largest auto market, but centred on electric cars in order to get an increased foothold in a segment set to grow rapidly in the coming years.

Recommended:



Popular

Mattis recommends letting transgender people serve in military, in break from Trump
But officials told CNN that the White House's wish is to find McMaster a four-star job that is seen as acknowledging his service. McMaster ordered the military to start planning the event for Veterans Day, a senior USA official confirmed Friday to Fox News .

Salah Sets Premier League Scoring Record as Liverpool Hit 100
Whatever West Ham fans thought of Moyes when his appointment was announced, he may be on course to slowly win some new admirers. The Hammers are unbeaten in their last three visits to this ground, winning once and drawing the last two in a row.

Microsoft Surface Pro debuts in India for Rs. 64999
You can add a Surface Pro Type Cover, which comes in a regular black colour and a signature platinum edition as well. The Surface Pen has also seen an improvement - it now supports 4,096 levels of pressure sensitivity.

Lonzo Ball On College Basketball Investigation: "Everybody's Getting Paid"
Los Angeles Lakers point guard Lonzo Ball (knee) will play against the Dallas Mavericks on Friday, head coach Luke Walton said. He knocked down his first shot, a 25-foot 3-pointer and made three-of-his-first-five 3-point attempts and 3-of-8 shots overall.

Snow Expected Saturday Prompts Winter Storm Warning
Another storm system is taking aim on the Upper Mississippi River Valley Saturday afternoon into Saturday night. The National Weather Service in Hanford warned of slick, snow-covered or icy roads and possible travel delays.

Meet Avani Chaturvedi: First Indian woman to fly fighter jet
Savita Chaturvedi, Flying Officer Avani's mother, says that the latter loved playing with aircraft models, unlike other girls. Officer Singh and Kanth have also completed their training and will soon be taking turns in flying fighter plane solo.

Alpine skiing: No regrets despite no title for irrepressible Kristoffersen
She was fifth in a World Cup Alpine combined last month after finishing outside the top 10 in the downhill portion . Lindsey Vonn said she needed a miracle to finish on the podium in the women's combined Alpine ski event Thursday.

Ferrari highlights aerodynamics development on new F1 auto
For the fourth consecutive year 38-year-old Raikkonen and four-time world champion Vettel , 30, will spearhead the Scuderia's campaign.

Do not test Israel, Netanyahu tells Iran, brandishing drone piece
He added: "I believe it is absolutely critical for Europe, for the world, to make sure we hold on to this agreement. Of Netanyahu's warning, Zarif said: "Well, if they try to exercise that threat , they will see the response".

Iranian rescuers find wreckage from crash
Though the 2015 nuclear deal lifted some of those sanctions, many older planes are still in service. Iran has suffered several aviation accidents in recent years and has an aging aircraft fleet.