Geely to buy 5% stake in Daimler, valued at €4 billion, for EV technology

After their recent acquisition of Lotus Cars and 49.9 percent stake in Proton Holdings, Geely Automobile Holdings (Geely) was reported to show interest in Mercedes-Benz’s parent company, Daimler.

China Central Television first reported that Geely is keen in acquiring a three to five percent stake in Daimler, which is valued at around €4 billion (RM19 billion). If the deal is secured, this would make Geely the third-largest shareholder, overtaking the Renault-Nissan Alliance (3.1 percent).

In the past, Geely has successfully acquired major brands such as Volvo Cars, London EV Company (formally known as London Taxi Company), Lotus Cars and Terrafugia. It was speculated that Geely is keen on tapping into Daimler’s electrification technology in view of the Chinese Government’s push for electrified vehicles.

It was reported that last month, Daimler rejected a bid by Geely to buy a five percent stake in the company at a discounted rate. Sources said that Daimler told Geely that they are welcome to purchase shares in the open market.

A spokesman for Daimler said the company was “very happy with our shareholder structure at present,” but added that it would welcome new investors with a long-term interest in the company.


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