DaimlerChrysler AG is expected to buy a 24 pct stake in Beiqi Foton Motor Co Ltd and the Chinese listed company will issue an unspecified number of new shares to DaimlerChrysler. The deal is expected to give Beiqi access to DaimlerChrysler expertise in heavy-duty truck manufacturing.

Beijing Automotive Industry Holding Co is currently Beiqi Foton's largest shareholder, with a 32 pct stake. The two sides have been in discussions for some time. But China's current policy, which allows foreign auto makers to set up at most two passenger-car joint ventures and two commercial-vehicle joint ventures, had prevented the deal from going through.

DaimlerChrysler has a commercial-vehicle venture, DaimlerChrysler Vans (China) Ltd, with Fujian Motor Industry Group and Taiwan-based China Motor Corp and another China venture, Yaxing Benz Ltd, with Jiangsu Yaxing Motor & Coach Group.

Jiangsu Yaxing agreed to take over management of Yaxing Benz venture last month, paving the way for the establishment of another DaimlerChrysler commercial-vehicle joint venture. The deal is subject to approval by regulators.

Source:佚名