China’s BAIC Group is looking to buy a stake of up to 5% in Daimler AG to cement its
investment in Beijing Benz Automotive, Reuters reported, citing three unidentified people familiar with the matter.
BAIC told Daimler that it was planning to buy a 4%-5% stake earlier this year, and asked local authorities in Beijing to support the purchase, Reuters cited two of the people as saying. One of the people also said BAIC has begun buying Daimler shares on the open market.
BAIC did not respond to a Reuters’ request for comment and Daimler declined to comment. It remains unclear if BAIC could raise the $3.37 billion that a 5% stake would cost at the current valuation, Reuters said.
Daimler has several ventures with local partner BAIC in China.