autoevolution
 

Geely CEO Buys 10 Percent Of Daimler AG, Becomes Biggest Shareholder

What would you do with your money if you were a businessman of businessmen among China’s greatest industrialists? Become the largest shareholder of Daimler AG, of course, buying a stake that’s estimated at $9 billion in the German group controlling Mercedes-Benz, smart, Freightliner, and Western Star.
Geely and Daimler 1 photo
Photo: Geely/Daimler
Born in 1963 and involved with Geely since 1986, Li Shufu is the chairman of the automotive group that controls Volvo Cars, Proton, Lotus, and London Electric Vehicle Company. The latest acquisition comes in the form of 8.2 percent of AB Volvo, for which Geely Auto paid off an estimated $3.3 billion.

The purchase of 9.67 percent of Daimler AG is different, though, for Li Shufu bought those shares for himself, not for Geely. The thing is, the Chinese automaker was eyeing an alliance with Daimler since eons ago, with Geely most interested about the EV advancements made by Mercedes-Benz.

As the biggest shareholder of Daimler AG, Li Shufu surpasses the Kuwait Investment Authority, which owns 6.8 percent of the German juggernaut. Geely and Daimler AG released statements on the acquisition, and the choice of words on both accounts is chock-full of flattery. Here’s Mr. Li Shufu:

“Daimler is an outstanding company with a first-class management. It will be an honor to support this unique team under the leadership of Dieter Zetsche in the future. I am particularly pleased to accompany Daimler on its way to becoming the world’s leading electro-mobility provider.”

Daimler, on the other hand, “is pleased to announce that with Li Shufu it could win another long-term orientated shareholder, who is convinced by Daimler’s innovation strength, the strategy and the future potential. Daimler knows and appreciates Li Shufu as an especially knowledgeable Chinese entrepreneur with clear vision for the future, with whom one can constructively discuss the change in the industry.”

All in all, Shufu and Geely haven’t made their intentions clear, their real intentions to be more precise. The involvement in the European automotive industry could be a part of a broader move to gain influence in a market where the Chinese have struggled time and time again. What’s more, the direct access to technology and profits shouldn’t be ignored either.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
press release
About the author: Mircea Panait
Mircea Panait profile photo

After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
Full profile

 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories