Geely reported to be proceeding with Benz stake acquisition

Shanghai (Gasgoo)- Geely has started the process to acquire a certain stake of Mercedes-Benz, according to a report of China Central Television (CCTV) Business Channel. But the amount hasn’t been specified.

At the end of last month, overseas media said that Daimler AG had turned down an offer from Geely to buy a stake of up to 5 percent via a discounted share replacement. It is reported that the stake size will be worth 4 billion euros (about RMB 40 billion). If Geely succeeds acquiring the stakes, it will become the third largest shareholder of Daimler. Even though Daimler has declined the offer, but it reportedly told Geely that the Chinese carmaker was welcome to buy its shares in the open market.

Via merger and acquisition, Zhejing Geely Holding Group has a total of six auto brands, Geely Auto, Lynk & Co, Volvo, Proton, Lotus and London Taxi, which cover mid-low brand, premium brand and luxury brand. The automaker also has an outstanding sales performance this year. By the end of November, it has sold nearly 1.1 million vehicles this year.

Analysts said that it is the dual-credit scheme in our country that pushes them to cooperate. In order to meet the requirements of the scheme, overseas automakers and China local automakers resort to the establishment of new energy joint ventures. Consequently, it is possible for Geely and Benz to join hands.