Daimler CEO Dieter Zetsche with the Mercedes-Benz Concept Style Coupe in ChinaEnlarge Photo
The information was first reported by China’s People’s Daily newspaper, which said the wealth fund was looking to purchase between 4 and 10 percent in Daimler.
At Daimler’s current share price, such a stake would cost between $2.4 billion and $6 billion.
If the deal goes ahead, China won’t be the first sovereign state with a share in Daimler. Kuwait still owns 7.6 percent, while Abu Dhabi’s Aabar Investments PJSC only recently offloaded its 3.07 percent stake in the automaker.
Daimler has been increasing its focus on the Chinese market lately, having already partnered with local automaker BYD to form the new brand Denza and just last month appointing Hubertus Troska as a new board member responsible for overseeing operations in China.
With China set to continue as the world’s biggest market for new cars for the foreseeable future, it’s no surprise that Daimler sees great potential there for sustained growth and the continuous expansion of its business activities in the country.