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.
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.
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.