Deals

China's BAIC Takes 5% Stake in Daimler to Boost Partnership

  • State-backed BAIC gets 5% stake in long-standing partner
  • Purchase brings Chinese ownership of German carmaker to 14.7%

Mercedes-Benz production in Moscow.

Photographer: Andrey Rudakov/Bloomberg
Lock
This article is for subscribers only.

One of Germany’s most storied industrial icons just became more Chinese.

Daimler AG’s Chinese partner, state-backed Beijing Automotive Group Co., is buying a 5% take in the Mercedes-Benz maker, cementing a more than decade long alliance of the auto manufacturers. Together with Daimler’s top shareholder -- Zhejiang Geely Holding Group Co.’s billionaire owner Li Shufu -- the transaction would take Chinese ownership in the world’s biggest luxury-car maker to almost 15%.