Geely Automobile Holdings (Geely) has successfully acquired shares in Daimler AG but contrary to our previous report which cited “less than three percent stake”, the Chinese giant has confirmed that they have acquired 9.69 percent stake of Daimler AG in the open market – valued at €7.3 billion (RM35.15 billion).
The share purchase makes Li Shufu, Chairman of Geely, the single largest shareholder of Daimler AG, surpassing Blackrock (5.95 percent), Kuwait Investment Authority (5.33 percent) and Renault-Nissan Alliance (3.1 percent). Geely nor its associates under the Geely group intends to acquire additional shares “for the time being”.
Mr Li said in a statement “Daimler is an outstanding company with a first-class management. I am particularly pleased to accompany Daimler on its way to becoming the world’s leading electro-mobility provider.”
Mr Li also expressed that he will fully abide by Daimler AG’s company charter and governance structure, respecting its values and culture.
Geely is China’s largest privately owned automotive manufacturing company with major assets within the group including Volvo Cars, Volvo Trucks, London Taxi, Proton Cars, Lotus Motors Cars and China’s largest car-sharing provider, Cao Cao.
“The competitors which technologically challenge the global car industry in the 21st century are not part of the automotive industry today. But with challenges come opportunities. No current car industry player will be able to win this battle against the invaders from outside independently. In order to succeed and seize the technology highland, one has to have friends, partners, and alliances and adopt a new way of thinking in terms of sharing and united strength. And we have to act now. My investment in Daimler reflects this strategic vision.” said Mr Li.