Beijing Auto to buy 40 pct of Daimler van JV
Beijing Automotive Industry Holding Corp will pay 700 million to 800 million yuan ($103-$117 million) for a 40 percent stake in Fujian Motor Industry Group's 50-50 commercial vehicle venture with Daimler AG in southeast China, an official newspaper said on August 1.
Beijing Auto, which already makes Mercedes-Benz cars in partnership with Daimler in China, is still awaiting the Chinese government's approval of the deal, which will leave Fujian Motor with a 10 percent holding in the venture, the Shanghai Securities News reported.
The paper attributed the range for the price of the deal to a source familiar with the situation, whom it did not name.
Daimler's 34 percent stake and China Motor Co's 16 percent stake will remain unchanged.
The venture, Fujian Daimler Automotive, was established in June 2007 with annual production capacity of 40,000 units.
Earlier this year, Daimler also reached agreement with Beijing Auto's subsidiary Beiqi Foton to make heavy-duty trucks.
Reuters reported last month that Beijing Auto was in talks to replace Fujian Motor in the Daimler venture, noting that Daimler was seeking a strong partner for its China operations.
