Chinese carmaker Beijing Automotive Group Co. Ltd. (BAIC) has acquired a 5 percent stake in German luxury carmaker Daimler AG, the two companies announced on Tuesday.
"We are very pleased that our long-standing partner BAIC is now a long-term investor1 in Daimler," said Ola Kaellenius, chief executive officer (CEO) of Daimler.
Based on the current market capitalization of Daimler, BAIC has invested approximately 2.6 billion euros (2.9 billion U.S. dollars) to acquire the 5-percent stake in the German carmaker although the two companies did not specify2 the precise volume of BAIC's investment.
"It has been our intention to strengthen our alliance with Daimler through an investment," said Heyi Xu, chairman of BAIC, adding that "we see our joint3 partnership4 as an excellent example of Sino-German collaboration5 and a model for the cooperation between companies of our countries."
The two carmakers have been working together since 2003 and are cooperating in production, research and development as well as sale of passenger cars, vans and trucks.
In 2013, Daimler took a stake in BAIC Motor, a subsidiary of BAIC Group. Currently Daimler holds 9.55 percent of BAIC Motor's shares as well as 3.01 percent of BAIC's electric vehicles subsidiary BAIC BluePark New Energy Technology Co. Ltd.