Daimler AG (DAI.XE) will on Friday sign an agreement with Beijing Automotive Group Co., known as BAIC Group, over a share swap deal, the Chinese internet portal Tencent News reported Wednesday.
Under the agreement, Daimler will take a stake of 10%-20% or even higher in BAIC Motor Co., a unit of China's fifth-largest car maker BAIC Group, and BAIC Motor will raise its stake in Beijing Benz Automotive Co., its joint venture with Daimler, to 51% from 50%, the report said.
It is unclear how big a stake BAIC will take in the German luxury auto company, said the report.
Taking a controlling stake in Beijing Benz will help remove a stumbling block for BAIC Motor to go public, as the move will sharply boost its earnings performance, the report added.
A BAIC official said last year that the company plans to raise about 10 billion yuan ($1.6 billion) through a Hong Kong listing in 2013.
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(END) Dow Jones Newswires
January 30, 2013 03:27 ET (08:27 GMT)
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