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Geely acquires 10-percent stake in Mercedes-Benz parent Daimler

by Justin King

The Chinese manufacturer is now Daimler\'s largest single shareholder.

China's Geely has acquired around $9 billion in Daimler shares, representing a 10-percent stake in the German automaker.

The investment marks further expansion of Geely's interest in European automakers. The company has owned Volvo Cars since 2010 and recently purchased a controlling stake in Lotus.

Daimler told Bloomberg that it welcomes another major investor and views the move as a vote of confidence.

"[Geely chairman] Li Shufu is a Chinese entrepreneur Daimler knows well and regards highly in terms of his competency and focus on future developments," said spokesman Joerg Howe. "Daimler already has a strong footing in China. We have a very strong partner with our existing cooperation with BAIC Motor."

The investment could provide Geely opportunities to gain a broader advantage as it attempts to expand its global reach amid a shift to electrification and autonomous vehicles, however the companies have not yet mentioned any collaborative projects or intellectual property sharing.