Announced in February this year, the deal will see Daimler’s investment take place through the issuance of new shares corresponding to a 12% stake in BAIC Motor and comes ahead of a planned initial public offering (IPO) in the future.

In addition, Daimler board of Management members Hubertus Troska and Bodo Uebber gain seats on the board of directors of BAIC Motor.

Furthermore, BAIC will increase its stake in the production joint venture Beijing Benz Automotive Corporation (BBAC) by 1% to 51%. At the same time, Daimler will increase its stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service Corporation (BMBS) by 1% to 51%.

Dr Dieter Zetsche, member of the board of management of Daimler AG responsible for Greater China, stated: ‘This strategic investment proves our long-term commitment to both the key market China and our trusted partner BAIC Motor. Going forward, the cooperation between Daimler AG and BAIC Motor will contribute towards increasing our footprint in China and so enable us to actively participate even better in the huge opportunities the Chinese automotive market offers.’

The deal has already been giving the green light from the Chinese authorities.