Daimler used a 5% stake for Beiben Holdings 16%, is it worth it? ~ Katja News

Daimler used a 5% stake for Beiben Holdings 16%, is it worth it?

Yesterday, BAIC announced that it has invested in Daimler to strengthen long-term strategic cooperation between the two parties and currently holds a 5% stake in Daimler AG. The transaction consisted of 2.48% of the direct shareholding and the right to obtain additional voting rights equal to 2.52% of the shares.

After Geely Li Shufu, Beiqi made a wish to take shares in Daimler. So far, two of the world's leading "car inventors" have two of the top three shareholders from China, the ratio of the two shares increased to 14.69%, which is the other major Daimler's Kuwaiti sovereign fund 6.8% More than twice the shareholding.

This result is in line with the “gossip” that Beiqi recently acquired 4% to 5% of Daimler’s acquisition.

As early as four years ago, Xu Heyi publicly disclosed at the Beijing Benz 10th Anniversary Celebration that BAIC is in talks with Daimler AG about the acquisition of shares. If the shareholding is successful, the BAIC Group will become one of Daimler's major shareholders.

However, BAIC has not shown any further progress since then. However, the interest rate of Geely first purchased 9.69% of Daimler and became the largest single shareholder of Daimler, which made the relationship between BAIC, Daimler and Geely new. focus point.

This means that after the opening of the auto joint venture stocks, the secret contest between BAIC and Daimler finally has a solution that both sides are willing to nod.

It also means that the news that Daimler has increased its shareholding in Beijing Benz is not far from the real hammer.

Currently, BAIC holds 51% of Beijing Benz and Daimler holds the remaining 49%.

The move by Beiqi to buy Daimler shares will strengthen its investment partnership with Daimler in Beijing Benz. Secondly, it can also alleviate the suspicion of Beijing Benz's joint-stock ratio change, because there has been news that Daimler plans to increase its shareholding in Beijing Benz from 49% to at least 65%.

With the 16% stake in Beijing Benz and the 5% exchange with Daimler, isn’t the deal worthwhile?

At least for Daimler, this is a “just-needed transaction”.

For the way of this acquisition, BAIC did not disclose too much. However, some analysts said that how Beiqi took a stake in Daimler was very similar to that of Geely's shareholding in Daimler. It was purchased directly through the secondary market.

Mercedes-Benz CEO Tsai Che said publicly: "Welcome investors from China. However, Chinese investors who buy Daimler can only buy Daimler's public offerings from the market, and will not involve other channels."

On the 12th of this month, Daimler issued an early warning to investors that it is expected to lose 1.6 billion euros before the interest and tax in the second quarter of 2019, which is quite different from the group's profit of 2.6 billion euros in the same period last year. The data shows that Mercedes-Benz's global sales in the first quarter fell by 7%.

Not to mention that Daimler has lowered its profit forecast three times in the past 12 months. After undergoing a reassessment of the measures taken by the government and the courts on Mercedes-Benz diesel vehicles, Daimler suffered a loss of 1.6 billion euros, an increase of about 10 in response to the increase in the recall period associated with Takada airbags. The provision of 100 million euros has also made Daimler’s situation worse.

The current auto industry has to invest heavily in electric vehicles and self-driving cars. This is undoubtedly a very lucrative project. At the same time, the slowdown in China’s auto sales growth, the weak European market, and the tight global trade have cast a thicker eye on the future of the auto industry. fog.

At this time, for a company, the actual "Wanjin Oil" is the silver of white flowers.

So what about the deal for BAIC?

The immediate advantage is that, due to the news of the acquisition of Daimler shares, Beijing Auto's highest intraday gain of 8%, closed up 2.77%, reported 5.19 Hong Kong dollars/share; Beiqi Blue Valley intraday rose 9.72%, closed up 5.88 %, reported 8.28 yuan/share.

Also, even if Daimler raised its shareholding in Beijing Benz to 65% in the future, it does not mean that BAIC has completely lost control of Beijing Benz. Beiqi shares in Daimler, on the one hand, to expand the group's business, on the other hand, it can also hold a 5% stake in Daimler and indirectly hold shares in Beijing Benz.

Under the premise that everyone is in dire straits, whether it is Daimler or BAIC, sacrificing part of the control rights and bringing some breathing space to the other side is a reasonable decision to take a step back.

Also, after Beiqi became a shareholder of Daimler, the three companies, BAIC, Daimler, and Geely, sat on the same boat. Li Shufu once said that there will be only two or three companies left in the auto industry in the future. BAIC urgently needs to change its mix. It is not impossible to buy tickets through Daimler's shareholding and try to realize cross-shareholding with Daimler and Geely. It is not impossible to revitalize its resource advantages as a state-owned enterprise.

If this is the case, the only thing that needs to be confirmed is who is the "big brother" in the process of combining the three giants.

There are not many cases of cross-shareholding in the auto industry. Many of them have ended up with disappointment. Daimler once had an unpleasant experience of cross-shareholding with Chrysler. Now Nissan and Renault is still in a mess.

On the contrary, Toyota has a healthier and longer-lasting relationship with Japanese companies such as Mazda, Panasonic, and Suzuki.

cross-shareholding stakeholders are business partners with business relationships, and in the same supply chain, the closeness of this community relationship is a major problem in cross-shareholding, which may be the future of BAIC. Facing.

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