Recently, media reported that Geely Group, owned by Li Shufu, announced to acquire Daimler Co., Ltd. through its overseas business entities, which means Geely has become the largest shareholder of Daimler group. Who is Li Shufu? How did he become the largest shareholder of Daimler group? Follow Xiaobian to find out!
Why Li Shufu bought Benz
On February 24, Geely Group Co., Ltd. (owned by Li Shufu and managed by Zhejiang Geely Holding Group Co., Ltd.) officially announced that it has acquired 9.69% of the voting shares of Daimler Co., Ltd. (hereinafter referred to as "Daimler") through its overseas enterprise entities. The stake means Geely has become the largest shareholder of Daimler group.
Headquartered in Stuttgart, Germany, Daimler's business units include Mercedes Benz passenger cars, Daimler trucks, Mercedes Benz light business vehicles, Daimler buses and Daimler financial services.
Li Shufu, chairman of Geely Holding Group, said: 'Daimler is an excellent company with a first-class management team. I am honored to be a shareholder in Daimler and support the management team led by Dr. Zetsche. I'm glad to be able to accompany Daimler's growth in the future and help it become a leader in the field of electric travel and online technical services'.
The deal still needs to be approved by Chinese regulators.
Why buy into Daimler: it's hard to win this war alone
"The global automotive industry in the 21st century is facing great opportunities for innovation and challenges from non automotive companies. It is difficult for all auto companies to win this war alone," said Li Shufu about why they want to acquire the shares of Daimler. In order to take the initiative to seize the opportunity, we must refresh our thinking mode, join hands with friends and partners, and occupy the technological commanding point through cooperation and sharing. The investment in Daimler is based on this strategic thinking. '
In an interview with the auto business daily, Li also predicted that only 2-3 enterprises in the world's traditional auto industry will survive in the future. Whoever can occupy the technological commanding height at that time will be the winner. In Li Shufu's view, Daimler is a global car leader, and a leader in all fields of electric, intelligent, driverless and shared travel. From the perspective of strategic synergy, Daimler has synergistic effect with Geely and Volvo, which is a major reason for Geely's shareholding in Daimler.
Where does the money come from? Through the overseas capital market arrangement, no domestic funds are used
According to regulatory filings, Mr. Li bought 9.69% of Daimler's shares through an investment fund, worth 7.3 billion euros (about $9 billion).
As for the source of the fund, Li Shufu said in an interview with the auto business daily that the acquisition fund is Geely overseas company's self balance of the acquisition fund through the arrangement of overseas capital market. He stressed that Geely did not use domestic funds for this equity investment. The whole transaction itself is completed in a completely open and transparent environment, which is a very valuable act of equity.
Geely Holding Group is the largest private automobile enterprise group in China, with a turnover of about 270 billion yuan in 2017 and a global tax payment of about 34.6 billion yuan, including 18.3 billion yuan in China.
Geely Group will hold a long-term stake in Daimler, and there is no plan for further increase at present
On the issue of corporate governance after the acquisition, Geely announced that after the completion of the acquisition, Geely Group will become the largest shareholder of Daimler, and promised to hold its equity for a long time. But at present, neither Geely Group nor any of Geely Holding Group's enterprises have plans to further increase their holdings in Daimler.
Li Shufu himself said that he would fully abide by the company's articles of association and governance structure, and respect the company's culture and value orientation.
In addition to the domestic automobile brand Geely, the main assets of Geely Holding Group also include Volvo cars, proton cars, rutes cars, London electric vehicles and the new energy vehicle sharing travel service platform Cao Cao special vehicle invested by Geely Group.
Who is Li Shufu
Li Shufu, male, born in Luqiao District, Taizhou City, Zhejiang Province in 1963, studied in Hubei Changjiang vocational college. Bachelor of management engineering, Harbin University of technology, master of mechanical engineering of Yanshan University, doctor of Harbin University of technology. Title of economist, model worker of Zhejiang Province.
Li Shufu started the Geely Group from scratch. By the end of 1999, Geely Group had nearly 10000 employees, with total assets of more than 2 billion yuan and annual sales revenue of more than 3 billion yuan. Geely Group is the first private enterprise to produce cars in China. In addition, Geely has invested more than 800 million yuan to establish Beijing Geely college, the largest private university in China. At 21:00 on March 28, 2010, in Stockholm, Sweden, Geely purchased 100% of Volvo car company of Ford Motor Company for 1.8 billion US dollars. At the 2013 NPC and CPPCC sessions, Li Shufu raised questions about air quality, taxis and the starting point of personal income tax. No. 122 on the Forbes Chinese rich list in 2015. On October 24, 2015, he was elected vice president of the first Council of Zhejiang chamber of Commerce. In the 2016 Hurun rich list, Li Shufu and Li Xingfu and their sons ranked 50th with 30.5 billion wealth.
He has been reappointed as a member of the National Committee of the Chinese people's Political Consultative Conference for three consecutive terms. Now he is the vice chairman of the all China Federation of industry and commerce, vice chairman of Zhejiang Federation of industry and commerce, chairman of Zhejiang Geely Holding Group Co., Ltd., chairman of Volvo car company, representative of Taizhou Municipal People's Congress, vice chairman of China Automobile Industry Association, vice chairman of China Private Education Association and deputy of the 13th National People's Congress.
In 1986, Mr. Li Shufu started his business by manufacturing refrigerators and spare parts for refrigerators. Then he entered the motorcycle manufacturing industry in 1993 and the automobile manufacturing industry in 1997. Over the past 20 years, Mr. Li Shufu has devoted all his sincere love to the development of China's automobile industry. The Geely Holding Group founded by him is the fastest-growing private automobile enterprise in China.
Under the leadership of Mr. Li Shufu, Geely Group has been adhering to the road of independent innovation for many years, taking the lead in making major breakthroughs in the core technology fields such as engine and gearbox in China's automobile industry. On March 28, 2010, Geely Holding Group and Ford Motor Company signed an equity acquisition agreement to acquire 100% of the equity of Volvo car company, and the acquisition was completed on August 2, 2010.