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.
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.