Second Chinese car company seeks to buy stake in Daimler

China's BAIC Group is seeking to buy a stake of up to 5pc in Daimler as a way to secure its investment in Chinese Mercedes-Benz manufacturing company Beijing Benz Automotive, three sources familiar with the matter told Reuters.

BAIC, which is ranked as China's fourth or fifth-largest carmaker, informed Daimler of its intention to buy a 4-5pc stake in the German maker of Mercedes-Benz cars earlier this year, two of the three sources said. State-owned BAIC has asked local authorities in Beijing to support a 4-5pc stake purchase, two of these sources said.

BAIC has started acquiring Daimler shares on the open market, one source said.

BAIC did not respond to repeated phone calls and text messages seeking comment outside regular business hours. Daimler declined to comment.

Rival Chinese carmaker Zhejiang Geely Holding Group built a 9.69pc stake in Stuttgart-based Daimler in early 2018.