Geely wants a part of Mercedes-Benz and is grateful refuses

The chinese giant Geely is moving stealthily to increase its presence and importance in the major markets of the globe. Currently is the owner of Volvo Cars, Proton and Lotus. However, you want to access to other brands to improve their positioning at the corporate level. The signatures are most desirable are those with a German passport and is confined to the level premium and sporty as Audi, BMW, or Mercedes-Benz.

This last has been proposed by to enter into its shareholder acquire a package significant to the 5 percent. To carry out your purchase, Geely wanted that the price of these actions had a small discount. Not to be the case, the chinese firm would have to fork out up to 4.5 billion euros. With this acquisition, not only would one of the firms most valuable at the global level, but could access your powerful machinery of I+D+i.

at such a proposition, “indecent”, Mercedes-Benz suggested to Geely that it was not prepared to that your current capital would dilute by means of a sale of shares with discount. For this reason, very educated, the cited who acquired these securities in the open market, just as you would any investor interested in entering the capital of the German house.

According to several sources, including Reuters, which is intended to Geely by entering in the register of shareholders of Mercedes-Benz is have access to the technology of batteries for electric cars that Daimler AG has been developing for their line of models EQ. To do this, would be proposing to the German group, the creation of a new joint venture that could locate in the chinese city of Wuhan (Hubei). In this way, Geely could improve their technology to electric vehicles and to accelerate the pace with their main rivals.

In any case, Mercedes-Benz has vetoed (for now) the entry of Geely in its shareholder because they have commitments with other firms in asia. BAIC Motor Corp and BYD are the brands that currently have collaboration agreements for the development of vehicles and technology aimed at China. In any case, none of the two reaches the volume of sales (5 percent of market share) or stock exchange value (32 billion dollars) that does have Geely, but entering Geely could occur conflicts of interest that Mercedes-Benz now you do not need.

Source – Reuters

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