Daimler 'wins approval' for stake in BAIC Motor

The bid by German automaker Daimler AG for a 12 percent stake in BAIC Motor has received regulatory approval from the government, making the company the first foreign manufacturer to invest in a Chinese automaker.

"The deal has got the green light from the National Development and Reform Commission, though it will still take time, at least one month, for the process to be completed," Chinese media reported, citing an anonymous insider from BAIC.

Daimler signed a binding agreement in February with Beijing Automotive Group to invest in its passenger car unit BAIC Motor through the issuance of new shares corresponding to a 12 percent stake.

Consequently, Daimler will increase its stake in the newly integrated sales joint venture Beijing Mercedes-Benz Sales Service Co by 1 percent to 51 percent.