Monday, 26 February 2018

Germany says it will remain 'watchful' after Geely buys $9bn stake in Daimler

Germany says it will remain "watchful" of Chinese carmaker Geely after it became the biggest investor in Mercedes-Benz owner Daimler.

The German government warned the deal should not be used as a "gateway" for Chinese industrial policy interests.

Geely, which has bought a 9.7% stake, says it hopes to co-operate with the German car giant on electric cars.

The Chinese firm already fully-owns Sweden's Volvo and black cab maker London Taxi Company.

Geely's $9bn (£6.4bn) investment has raised some concerns that the Chinese firm will seek access to technology and innovation in exchange for the deal.
The German government said it would not block the investment, but Economy Minister Brigitte Zypries said it must "keep an especially watchful eye".

Germany is "an open economy that welcomes investments, as long as they happen in line with the market", she told the German newspaper Handelsblatt.

BBC        News.