Geely's stake in Daimler underscores Chinese companies' desire to compete

GEELY HOLDING GROUP has acquired a stake worth about $9.2 billion in Daimler AG - 9.69 percent of the company - through an investment fund, becoming the largest investor of the German automaker. Beijing News commented on Monday:

The investment furthers Geely's foray into the European auto market, and puts an end to months of speculation about a possible deal.

This is another eye-catching move by Geely, which has already purchased the brands of Volvo and a controlling stake in Lotus, and provides the automaker in Zhejiang province with access to badly needed advanced management and core technology.