Daimler acquisition boosts Foton share price

Shares in Beiqi Foton Motor, China's biggest light commercial vehicle manufacturer, rocketed 4.43% in value Thursday after news broke that the world's largest truckmaker, DaimlerChrysler, will pay US$104 million for a 24% stake in the company, the South China Morning Post reported. Subject to shareholder and regulatory approval of the issue of 297 million new shares to the German automaker, Daimler will become the company's second-largest shareholder after parent group Beijing Automotive Industry Holdings (BAIH), which is itself due to take a further 129 million shares. Funds generated by the investment will be used to improve facilities, build an R&D center and repay bank loans, Foton said. Daimler already has a joint venture with BAIH, which produces Jeeps and Mercedes-Benz cars.