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BYD and Daimler to boost cooperation in electric vehicle
Posted on Thursday, 18 May 2017 09:45
BYD and Daimler have agreed to inject a further CNY 1.00 billion (USD 145.12 million) in their jointly-held Chinese electric vehicle unit Shenzhen Denza New Energy Automotive (Denza).
The two parents each owns 50.0 per cent of the target through their Chinese subsidiaries BYD Automobile Industry and Daimler Greater China and will both invest in proportion to their shareholdings.
Denza was formed seven years ago in a CNY 600.00 million deal as BYD and Daimler were hoping to benefit from the vast potential of the Chinese electric car market.
The joint venture’s registered capital will grow to CNY 3.36 billion following the billion-yuan investment, giving the electric vehicle developer the resources needed to boost its sales network and enhance its brand name.
Frankfurt Stock Exchange-listed Daimler is a multinational automotive corporation which owns German car brands Mercedes-Benz and Smart.
Last month, the Stuttgart-headquartered company teamed up with T-Systems International and DKV Euro Service to form toll payment technology developer Toll4Europe.
Traded on both the Hong Kong Stock Exchange and the Shenzhen SME Board, BYD manufactures secondary rechargeable batteries and automobiles, as well as electronic devices like keyboards and web cameras.
In a similar move last year, the Shenzhen-based company agreed to inject a further CNY 1.00 billion in automobile loan provider BYD Auto Finance, a subsidiary it owns with Bank of Xian.
Most recently, BYD formed a lithium products manufacturing joint venture worth CNY 500.00 million with Qinghai Salt Lake Industry and Shenzhen Zhuoyucheng Investment in January 2017.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been eight announced or completed deals targeting Chinese automobile makers in 2017 to date, with the largest being the USD 600.00 million investment in Shanghai-based Nextev.
The transaction involved 14 subscribers, which include Baidu, Tencent Holdings and Legend Holdings.
© Zephus Ltd