BAIC acquires 35% equity interest in Fujian Benz

Gasgoo.com (Shanghai June 13^th)– BAIC Motor Corporation., LTD. and FUJIAN Motor Industry Group Co. have signed an Equity Transaction Agreement in respect of the proposed acquisition by BAIC of the 35% equity interest in Fujian Benz Automobile Co., Ltd. held by FJMOTOR in FuZhou, China, on June 12th. As agreed in the agreement, upon completion of the Equity Transaction, BAIC and FJMOTOR will hold 35% and 15% equity interest in Fujian Benz, respectively, and Daimler Vans Hong Kong Limited will hold the remaining 50% equity interest in Fujian Benz.

Fujiang Benz, which is Daimler’s only plant in Asia and Oceania manufacturing light business purpose vehicles, is a production base with the most completed product lines. This Equity Transaction will enrich the BAIC’s product lines, as well as achieve joint market exploration by capitalizing on all partners’ technologies, talents and strategies.

With the development China’s overall economy, the number of business receptions and business trips has been expanding rapidly recently, which will boost the sales of high-end light business purpose vehicles. Under this background, BAIC acts promptly to invest in Fujian Benz, so the company could have an edge in this emerging market.

Besides, the Equity Transaction will also further extend the cooperation between BAIC and Daimler in finished automobiles, and pave the way for the establishment of a comprehensive partnership.