BYD (OTCPK:BYDDF) has taken full control of its joint venture with Mercedes-Benz (OTCPK:MBGAF) in China by buying the remaining 10% stake in Shenzhen Denza New Energy Automotive, according to Knife Post mail.
The acquisition was completed on September 14, 2024, and will be followed by the acquisition by BYD (OTCPK:BYDDF).) Previous increase in ownership from 50% to 90% in 2022, report He said.
Denza was founded by BYD (OTCPK:BYDDF) and Mercedes (OTCPK:MBGAF) in 2011, with each owning a 50% stake. However, poor sales have led Mercedes (OTCPK:MBGAF) to reduce its stake to 10%.
The sale of this 10% stake by Mercedes (OTCPK:MBGAF) marks the end of a 13-year partnership between the two companies.
The decision comes against the backdrop of growing trade tensions between China and Europe, with the European Union considering imposing tariffs of up to 38.1% on Chinese electric cars.
Denza is targeting the luxury electric vehicle market and has seen a sales rebound, especially with its D9 subcompact, which is the best-selling car in its class.
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