FRANKFURT - Daimler (IW 1000/18) said Tuesday it has been given the green light from China to acquire a 12% stake in BAIC Motor, a unit of Beijing Automotive Group.
"This important joint move breaks new ground as the first ever investment by a non-Chinese automotive company in a Chinese original equipment manufacturer," the German car maker said in a statement.
The move, originally announced in February, is aimed at increasing Daimler's presence in the all-important Chinese market.
"This strategic investment proves our long-term commitment to both the key market China and our trusted partner BAIC Motor," said Daimler chief executive Dieter Zetsche.
"Going forward, the cooperation between Daimler and BAIC Motor will contribute towards increasing our footprint in China and so enable us to actively participate even better in the huge opportunities the Chinese automotive market offers," he added.
Financial terms were not disclosed, but Daimler said the deal will involve the issuance by BAIC Motor of new shares corresponding to a 12% stake.
Copyright Agence France-Presse, 2013
