Volvo owner Geely has no immediate plans to buy more in the Mercedes-Benz parent Daimler after the acquisition of the German brand is the main shareholder.
The Chinese car giant, which now owns 9.69% of Daimler, has exceeded the Kuwait Investment Authority is 6.8% of the capital and of the Renault-Nissan-Mitsubishi Alliance a 3.1% share. At current exchange rates, the Geely deal is reportly worth about Â£6.4 billion.
Geely boss Li Shufu (pictured below) said in a statement that his company has no intention to increase its stake in Daimler “for the moment”. He said: “I will fully comply with the company charter and the corporate governance structure of Daimler and the respect of its values and culture.”
Experts believe that investments in Daimler, of which 70.7% is owned by institutional investors and 19.4% is owned by private investors, could help Geely rapid negotiations for the purchase of technology and engineering the knowledge of the influence of the German mark.
The movement is part of an aggressive expansion by Geely, which has shot to prominence in Europe after the acquisition of Volvo in 2010 from Ford, and has continued to buy The London Taxi Company in 2012. He created the Lynk&Co brand in 2016, and has acquired a majority stake in Lotus, and almost half of Proton’s parent company DRB-Hicom last year.
Geely also recently bought the American flying car start-up Terrafugia, with the ambition to launch its first flight of the vehicle in 2019. It was thought that Geely may be looking at the continuation of its electric car strategy.
An analyst from the source predicts that it is likely to be the case, saying: “With all the upheavals in the market and the luxury brands around the world to work on their future investments in areas such as electric vehicles, autonomous vehicles and the mobility-as-a-service, brands will be regularly courted by new entrants, in order to establish brand loyalty in new products (such as EVs) and to ensure the effectiveness of the use of new technologies.â€
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