Daimler is seeking to buy a majority stake in its Chinese operations, said three Reuters sources, after initial efforts to raise its stake failed and as Chinese investors tighten their grip on the German carmaker, reported Reuters.
Daimler has been exploring several options to strengthen its control of Beijing Benz Automotive, its Chinese joint venture with BAIC Group, including a plan to raise its stake to 75% from the current 49%.
Daimler faces some opposition within BAIC as the Chinese partner wants to maintain control of the highly profitable business that has benefited from strong sales of Mercedes-Benz cars and helped it fund expansion into other activities.
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