Kretschmann: If necessary, prevent the takeover of Mercedes

Chinese investors
Kretschmann: If necessary, prevent the takeover of Mercedes

Mercedes Benz

Baden-Württemberg’s Prime Minister Winfried Kretschmann wants to prevent a takeover of Mercedes by Chinese investors in an emergency. Photo: Fabian Sommer/dpa

© dpa-infocom GmbH

Meanwhile, Mercedes-Benz CEO Källenius emphasizes the good relations with Chinese investors and the high relevance of the Chinese sales market.

According to Baden-Württemberg’s Prime Minister Winfried Kretschmann, a takeover of Mercedes by Chinese investors should be thwarted if necessary.

“We wouldn’t allow that at all,” says the Green politician in the daily newspaper “Handelsblatt”, referring to the foreign trade law. The strong position of two major Chinese investors in Mercedes had also triggered fears in the past.

Federal government with veto power

If a foreign investor based outside the EU approaches a German company, the federal government has a right of veto under certain conditions.

Almost a fifth of the Stuttgart Dax group is already in Chinese hands. The Chinese Mercedes partner BAIC is the largest single shareholder in Swabia with a stake of 9.98 percent. The Chinese investor Li Shufu also holds 9.69 percent through a company. Kuwait’s sovereign wealth fund also has a large block of shares at 6.84 percent.

Källenius emphasizes good relationships with investors

When asked if he would have a problem if the two major Chinese shareholders increased their shares, Mercedes-Benz CEO Ola Källenius said: “That’s not the case. We have very good and strong relationships with our investors.” China is the world’s most important sales market for Mercedes cars. “In recent years, China has grown faster than almost any other market,” says Källenius.

When asked about human rights violations in China, the Mercedes boss said that the same standards with regard to human rights and working conditions apply everywhere in the group. «I am convinced that we have a positive influence in our sphere of activity. From a purely economic point of view, it would of course not be the best strategy to artificially hold back in what is currently the largest market,” says Källenius.

dpa

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