AutoBeta(AutoBeta.net)03/23 Report--

On June 28 last year, the Ministry of Commerce of the National Development and Reform Commission issued new measures for the management of foreign investment, and the restrictions on foreign equity ratio of passenger cars will be lifted by 2022. In the face of this new policy, many overseas car companies are ready to move. BMW was the first to increase its stake in the Chinese joint venture brilliance BMW to 75%. Then Volkswagen Audi also revealed plans to "increase its stake." now there is news that Daimler also wants to increase its stake in Beijing Automobile and has asked Goldman Sachs for help.

According to a person familiar with the matter, Daimler has commissioned Goldman Sachs to help it increase its stake in Beijing Auto, and negotiations are still at an early stage, Reuters reported.

At present, BAIC accounts for 51% of the shareholding structure of Beijing Mercedes-Benz, while Daimler Greater China Investment Company and Daimler together account for 49%. In addition, Daimler accounts for 30.4% of the relevant shares of Beijing Automobile, 9.55% of the total shares of Beijing Automobile, and 3.93% of BAIC New Energy.

As early as December, according to Bloomberg, Daimler said it wanted to increase Beijing Mercedes-Benz's stake from 49% to 65%, but the talks gradually ended, and BAIC denied Daimler's plans to increase its stake in Beijing Mercedes-Benz.

BAIC sold 2.402 million vehicles in 2018, of which Beijing Mercedes-Benz sold 485000 vehicles in 2018, an increase of 15% over the same period last year. Beijing Hyundai achieved restorative growth in 2018, with annual sales of 810000 vehicles, an increase of 3% over the same period last year. Beijing car sales totaled 160000, up 3% from the same period last year. Among them, 45000 new energy products were sold, accounting for nearly 30%.

According to a previous announcement issued by BAIC, the net profit attributable to Beijing auto equity holders is expected to rise by more than 95% as of December 31, 2018 compared with the same period in 2017, mainly due to the continued growth of Beijing Mercedes-Benz performance in 2018. Beijing Hyundai and independent product performance recovery, resulting in increased efficiency.

For a long time, Beijing Mercedes-Benz has always been the profit cow of BAIC. Data show that Beijing automobile sales in the first half of 2008 were 719600, net profit reached 8.045 billion yuan and operating income reached 76.902 billion yuan, of which the income from Beijing Mercedes-Benz reached 70.219 billion yuan. Beijing Mercedes-Benz contributed more than 90% of Beijing Automobile's revenue, and Daimler increased its stake in Beijing Automobile, which is equivalent to putting benefits into its own pocket. Therefore, it is reasonable to cause the resistance of BAIC.

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