Geely says won't buy more Daimler shares 'for time being'

China's Geely buys a $9 billion stake in Daimler, reports Bloomberg

China's Geely buys a $9 billion stake in Daimler, reports Bloomberg

Daimler says that Chinese businessman Li Shufu, chairman of Zhejiang Geely, has acquired almost 10 percent of the German automaker's shares.

It's no secret that Geely was looking to strike an alliance with Daimler the past few months over EV technologies, as the Chinese government's requirements for cleaner cars create pressure on automakers.

The Chinese automaker could announce the transaction in coming days, Bloomberg reported.

The share purchase makes Li Shufu now the single largest shareholder of Daimler AG and points to a long-term commitment.

This makes Zhejiang Geely Holding Group Daimler's largest investor, Bloomberg said.

Ferdinand Dudenhoffer, a professor who runs an automotive research centre at the University of Duisburg-Essen, said many people in Germany were cautious about investments by Chinese companies.

Daimler overtook homegrown rival BMW to become the world's largest luxury vehicle maker by unit sales in 2016, helped by a broad refresh of its model range and powerful sales growth in China.

The stake will not be owned by Geely.

Geely could not be reached for comment.

Geely is based in the eastern Chinese province of Zhejiang.

Li has been working to acquire an array of global automotive holdings and turn Geely into the dominant player in China.

In addition to be known as owner of Swedish automaker Volvo Cars, at the end of previous year, Geely also became known as the largest shareholder of the commercial vehicle manufacturer Volvo Trucks.

Geely Group also owns one of China's largest car-sharing providers, Cao Cao (100%), operating a fleet of around 16,000 electric vehicles worldwide.

In November, Geely asked Daimler to issue new shares so it could buy a stake, but the German company turned down the offer saying it did not want to dilute existing shareholders, sources at the time told Reuters.

In 2010, it purchased Sweden's Volvo Cars.

BMW is controlled by the Quandt-Klatten family, whose billionaire siblings boosted their personal holdings in the second-largest luxury carmaker this year after equally dividing their late mother's stake.

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