Mercedes-Benz on Thursday said it completed the acquisition of a 3 per cent stake, worth 1.34 billion yuan (US$191 million), in motorcycle maker-turned-autonomous driving systems developer Chongqing Qianli Technology, three months after the deal was first announced.
The transaction involved Mercedes-Benz Digital Technology, the German carmaker’s tech unit, and Shanghai-listed Lifan Holdings, which transferred 135.6 million shares of Qianli at 9.87 yuan per share.
Before the transaction, Lifan Holdings – once China’s top motorcycle maker – held more than 5 per cent of Qianli’s shares. After closing the deal, Mercedes-Benz became Qianli’s fifth largest stakeholder.
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According to the terms of the deal, the transfer of the shares “will not lead to changes in the controlling shareholders and actual controllers of the company, and will not affect the offer for acquisition”.
Mercedes-Benz said it was committed to not reducing its shareholding in Qianli for at least 12 months.
The acquisition underscored efforts by Mercedes-Benz to deepen its ties and strategic collaborations in the world’s largest car market.
Chongqing Qianli Technology headquarters. Photo: Handout alt=Chongqing Qianli Technology headquarters. Photo: Handout>
Mercedes-Benz, Tesla and Volvo last month became the first foreign carmakers approved to deploy artificial intelligence chatbots in their vehicles in China, which marked a potential acceleration of Beijing’s vetting process for AI services.
The Cyberspace Administration of China’s Beijing branch registered the “Mercedes-Benz virtual assistant” as a generative AI service at about the same time when the regulator’s Shanghai branch approved Tesla Shanghai’s xBot service and Volvo’s local chatbot Xiao Wo.
In the past few months, Mercedes-Benz has also invested in a number of China’s rising AI companies.
Founded in 1992 as a motorcycle manufacturer, Lifan Holdings later broadened its operations to include automobile components. Its investors included a private equity fund supported by Chinese carmaker Geely and the municipal government of Chongqing.
Lifan Holdings chairman Yin Qi co-founded and previously served as CEO at Chinese AI firm Megvii, which is backed by Alibaba Group Holding. Hangzhou-based Alibaba owns the South China Morning Post.
