Daimler has refused an offer from Chinese automaker Geely to purchase a 5 per cent stake in the company.
According to Reuters, Geely offered to purchase 5 per cent of Daimler through a discounted share placement in a deal which would cost approximately $4.5 billion at market prices.
Insiders believe Geely wants to gain access to Daimler’s electric vehicle technology as tough new emissions laws are passed in China. Upon refusing the offer, Daimler said Geely can buy shares in the open market.
Although Geely has failed to comment on the reports, a Daimler spokesman said it is welcome to new investors with long-term interest in the company.
If Daimler did accept Geely’s offer, the Chinese firm would have become Daimler’s third-largest shareholder behind the Kuwait Investment Authority and BlackRock.
Daimler already has joint ventures with Chinese carmakers BAIC Motor Corp and BYD.