[blackwasp]

Daimler - the maker of Mercedes-Benz cars, has turned down an offer from Geely - the Chinese company that owns Volvo, to purchase a 5% stake in it. Geely had plans to buy this stake, valued at US$ 4.5 billion, through discounted shares of Daimler.

According to a media report, the Chinese company was aiming to acquire Daimler's electric car battery technology and try to form a joint venture in China. The two companies are reported to have met for a discussion in Beijing, where Geely offered to purchase a 3% - 5% stake if Daimler would issue new shares at a discounted price. However, Daimler reportedly asked Geely to buy shares from the open market if it was interested.

The German company has refrained from entertaining such requests in the past as well, citing concern for its existing shareholders. A similar deal with their joint venture partner BAIC did not materialise due to the same reason.

At present, Daimler has a joint venture with BAIC Motor Corp in China. Recently, it announced plans to invest US$ 757 million in electric vehicle and battery production with BAIC. It also has a joint venture with BYD Auto in the Asian country.

Geely is currently valued at US$ 32 billion and holds a 5% market share in the Chinese auto market. If the proposed offer would have been taken up by Daimler, Geely would have become the third-largest stakeholder in the company after the Kuwait Investment Authority and BlackRock, who hold a 6.8% and 6% stake respectively.



Source - Reuters

Link to the Team-BHP News

[GTO]

The aspirations of Chinese car makers never cease to amaze, and I mean that in a good way. They are coming! One day, some Chinese brands will be respected the same way that Hyundai is today (note: Hyundai was the laughing stock of the 80s & early 90s).

Not only Volvo, Geely also owns / controls Lotus & Proton.

With this move, I think Geely was basically looking at technology from Daimler. Have read that Geely's R&D spends are among the lowest of big car companies. The company has made big EV announcements & is going to need tech to keep up with the EV revolution.

[dipen]

At a general glance, Geely went the wrong way. Why would Mercedes offer shares at discounted value. It would be inappropriate to existing shareholders. All such stake sales are usually at a little over current market price. Only exception would if the stock has shot way over its intrinsic value (which isn't the case here) or Daimler was looking forward themselves to raise money themselves like a QIB placement or rights issue (which again isnt the case).

[romeomidhun]

These copy cat Chinese manufacturers are cash-rich, and now they want to take over the manufacturers world wide who earned their reputation through real hard work. I appreciate Daimler for their bold stance. My request to other such manufacturers is don't fall for the cash offered to you by these Chinese ones. They are the ones who shamelessly copied your eye catchy designs. They are the ones who earned from your efforts. Now you are on the verge of losing your identity to the same craps!

[volkman10]

China's Geely buys shares in Germany's Daimler reports Reuters.

Chinese carmaker Geely has bought shares in German car and truck maker Daimler (DAIGn.DE), as the Chinese owner of Volvo cars seeks to strike an alliance over electric cars technology.

The size of the stake is unclear but likely to be below 3 percent, as that level would require Geely to make a regulatory disclosure in Germany.

It was also unclear whether Geely, which owns London taxi manufacturer LEVC as well as stakes in Volvo trucks (VOLVb.ST) and Lotus sportscars, had sought to buy more Daimler shares.

Daimler on Tuesday reiterated it would welcome interest from long-term shareholders and added any significant changes to its shareholder structure would be published on its website.

Speaking at an event in Duisburg, Germany, Daimler Chief Executive Dieter Zetsche said on Tuesday he had no information about Geely’s purchases of Daimler shares.

Daimler executives have said they see no need to take on another industrial partner in China because there is significant capacity for expansion in a venture jointly run with China’s BAIC Motor Corp

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[volkman10]

Geely Chairman Becomes Largest Single Shareholder At Daimler!

China’s Geely, or rather its chairman Li Shufu, now holds a 9.69 percent stake in Daimler. That’s enough to make the billionaire the single largest shareholder in the company, which of course owns Mercedes-Benz.

His strategic goal was an alliance with Daimler, which is developing electric and self-driving vehicles, to respond to the challenge from U.S. players Tesla, Google and Uber, who are all working on their own driverless cars.

Zhejiang Geely already owns Volvo Cars, LEVC, the maker of London’s black cabs, a 49.9 percent stake in Malaysian automaker Proton, a $3.3 billion stake in Volvo Trucks and flying car start-up Terrafugia.


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[deetjohn]

Originally Posted by volkman10

Geely Chairman Becomes Largest Single Shareholder At Daimler!

Amazing! And quite smart.

Originally Posted by Reuters

In November, Geely asked Daimler to issue new shares so it could buy a stake, as a way to access Mercedes-Benz technology for electric cars and trucks, including battery technology, to help Geely comply with a Chinese crackdown on pollution.

But the German company turned down the offer saying it did not want to dilute existing shareholders, sources at the time told Reuters.

Li Shufu changed tactics, and quietly amassed a stake of 9.69 percent worth $9 billion at Daimler’s current share price.

Li Shufu, chairman of Geely Holdings.

Originally Posted by romeomidhun

My request to other such manufacturers is don't fall for the cash offered to you by these Chinese ones.....Now you are on the verge of losing your identity to the same craps!

Don't paint with such a broad brush. Would be akin to saying don't sell JLR to Tata after looking at the City Rover. We all know how that story turned out to be.

Besides, it certainly looks like Geely knows what its doing. They single handedly made Volvo so desirable and strong again the international market.

For good or bad, Chinese are the new Koreans who in-turn were the new Japanese about a decade back. And with the kind of disruptions happening in the auto industry, some of them surely won't have to wait a decade. Very interesting times ahead.

[volkman10]

Mercedes-Powered Volvos' possible, thanks to Geely Investment.

Now that Geely chairman Li Shufu is the largest single shareholder in Daimler, there's a strong possibility that the two firms could cooperate on tech development. According to the German business publication the partnership could even extend to Daimler buying a small stake in Volvo, which Geely owns, and potentially supplying engines and other components to the Swedish marque

The technology partnership would allegedly have Geely and Mercedes creating a platform for electric vehicles together.


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