Daimler AG has taken a 12 percent stake in its Chinese partner Beijing Automotive Group for 625 million euros ($845 million), expanding its footprint in the fast-growing China auto market.
Beijing Automotive, known as BAIC, is one of China's largest automakers and sold 1.7 million vehicles last year. Its decade-old joint venture with Daimler began producing Mercedes-Benz cars in 2006 and this year began making four and six-cylinder engines. It also produces Auman brand medium and heavy trucks.
As part of the new arrangement, BAIC will increase its stake in production joint venture Beijing Benz Automotive Corporation from 50 percent to 51 percent. Daimler will increase its stake in their sales joint venture by the same amount to 51 percent.
Changes in the shareholdings of the joint ventures would not bring about substantial changes in how they're run, Daimler CEO Dieter Zetsche said at the company's Beijing headquarters.
"These numbers happily reflect the increased level of cooperation and mutual understanding this will generate for us," he said.