Geely chairman builds $9 billion stake in Germany's Daimler

rockdog

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https://www.reuters.com/article/us-...llion-stake-in-germanys-daimler-idUSKCN1G72B7

BEIJING/FRANKFURT (Reuters) - The chairman of Chinese carmaker Geely [GEELY.UL] has built a 9.69 percent stake in Mercedes-Benz owner Daimler (DAIGn.DE), filings showed on Friday, demonstrating a shift in strategy by Chinese investors seeking access to new technology.

Two sources familiar with the thinking of Li Shufu said his move to accumulate the stake, which has a market value of $9 billion, was motivated by the “dramatic transformation” under way in the automotive industry.

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

“This is what Chairman Li has envisioned. He thinks maybe one or two or three manufacturers that exist today will survive in this new competition,” one of the sources said, requesting anonymity because of the sensitivity of the matter.

“He thinks existing manufacturers should unite and invest in the future and become one of the two or three companies that will survive.”

Mercedes-Benz already has an industrial alliance with Renault-Nissan (RENA.PA), which owns a 3.1 percent stake in Daimler, and has announced plans to build electric cars in China with existing partner BAIC Motor Corporation (1958.HK).

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Benz sold 600,000 cars in China on 2017, maybe not a bad deal for Geely...
 

Madooxno7

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If west will not pay attention to these deals...they will pay in long term.
 

Armand2REP

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It won't be long before they go tits up like Anbang and the Chinese state takes over the "acquired technology."
 

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