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Two sources familiar with the plan said that Daimler hopes to buy a part of the rights of a Chinese automotive company, Beijing Automotive, to increase its share of the Chinese market.
"The investment will be conducted before the BAIC Motor's initial public offering (IPO) and Daimler will become the only anchoring investor in the automotive industry." One source said.
According to sources, Beijing Automotive Group plans to list Beijing Auto in late 2013 or 2014. Daimler may purchase approximately 10% of its equity interest in Beijing Auto before listing, and thus gain greater access to the Chinese market.
"If IPO stocks rise, Daimler will benefit," the source said.
Daimler is also seeking to obtain a board seat at Beijing Motors, but the discussion on the issue is not yet over, the person said.
Daimler declined to comment; it could not be immediately contacted by BAIC to comment.