The National Development and Reform Commission (NDRC) released a reply on Feb. 7, permitting Daimler Greater China Ltd. to acquire a certain stake of BAIC BJEV owned by Shenzhen Jinggangshan New Energy Investment Management Co., Ltd.
To prevent the state-owned assets from loss, stake transfer must be conducted in accordance with some relevant regulations. After the stake transfer, Chinese party should take up no less than 50% of the stake in BAIC BJEV.
Daimler and BAIC drew public attention once again with the releasing of NDRC's reply. This reply signaled that NEV JVs are breaking political restrictions in China, and the Chinese government is proactively guiding the development of NEVs. Moreover, it also indicated that Chinese leading self-owned NEV brands are gaining increasing attention and recognition, expected to be industry-leading companies in the future.
In June, 2017, BAIC Group signed a framework agreement with its German partner Daimler AG. As a vital part of the framework agreement, Daimler intended to invest in BAIC BJEV.
BAIC BJEV has made a range of preparations to be a listed company. At the crucial moment, Daimler's stake acquisition will greatly support BAIC BJEV to be listed on a stock exchange. Their cooperation in NEV field will motivate both parties to make full use of their respective advantages in NEV technologies and market operation. Therefore, Daimler's stake acquisition not only provides financial support for BAIC BJEV, but also benefits both parties a lot in technological sharing, joint R&D and joint expanding of global market shares, especially in brand premium. It will also support BAIC BJEV to release premium models in the future.
