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According to relevant media reports, Xu Heyi, chairman of BAIC, made a public response to the Daimler stake for the first time, stressing that the current cross-shareholding relationship was not due to changes in the situation later, but years ago.

On July 23, BAIC officially announced that it had completed the acquisition of a 5% stake in Daimler AG, continuing to consolidate the partnership between the two sides. At the same time, BAIC has also become Daimler's third largest independent shareholder.

On July 29, Xu Heyi, chairman of BAIC Group, said frankly at the media forum of BAIC Group that BAIC had made a lot of painstaking efforts to acquire a stake in Daimler, and it took a long time to prepare for this. "We lack experience in operating this incident, so we need to be rigorous and prudent and act in strict accordance with the laws and regulations, so it takes a long time."

Earlier, a senior securities analyst in the auto industry also said that "the acquisition of such a large stake in Daimler is a big deal for state-owned enterprises." That year's agreement may also give a wide range of time to complete the deal. If Geely didn't get there first, BAIC might have to put it off. " .

Beijing Automobile has a long history with Daimler. Since 2003, Daimler and BAIC have established a long-term strategic partnership. Since then, the two sides established a joint venture Beijing Mercedes-Benz Motor Co., Ltd. in 2005. The two sides jointly sell cars through Beijing Mercedes-Benz sales and Service Co., Ltd. In 2012, BAIC Foton Motor Co., Ltd., controlled by BAIC, formed a joint venture with Daimler to produce medium and heavy trucks.

It has not been a day or two since it was rumored that BAIC planned to take a stake in Daimler. As early as 2013, the two sides proposed a plan of cross-shareholding, which is also known as "Beidaihe" cooperation, and agreed that after Daimler holds a stake in BAIC, BAIC will also buy a stake in Daimler.

BAIC has been a shareholder in Daimler for three years, and it is not only BAIC with a state-funded background, so it is not easy to get approval. Another key factor is the stock price. There is a big difference in the price of equity acquired by Geely and BAIC. When Geely bought its stake in Daimler in 2018, Daimler's share price was high, at about 70 euros a share.

Now, BAIC has acquired 2.48% of Daimler's direct stake and 2.52% of the voting rights of the shares at a price of 47 euros per share, which is the final response to the cross-shareholding plan put forward by both sides in previous years. After the equity deal, Kang Linsong, chairman of Daimler AG and global president of Mercedes-Benz Automotive Group, immediately responded: "this has strengthened the successful partnership between the two sides. The Chinese market is a vital pillar of our success now and in the future, not only in terms of sales, but also in product development and production."

It is worth noting that Zhejiang Geely Holdings Group Co., Ltd., another independent car brand in China, successfully acquired about 9.69% of Daimler's voting stake in February 2018, becoming a major shareholder in Daimler, followed by the introduction of smart's domestic project.

It means that Daimler already has a stake in two major Chinese car companies and is a German company with Chinese capital strength, with Geely as the largest shareholder and BAIC as the third largest shareholder.

However, at a time when the car market is beginning to decline, obviously affecting the sales and profits of car companies, it is undoubtedly a more reasonable choice to stay warm together. With the increasing maturity of electric vehicles and self-driving technology, it has a great impact on established car companies, so working with partners is the best strategy to reduce risk. BAIC's stake in Daimler is the best example of a strong combination between car companies.

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