Daimler Sold Passenger Car Plant in Brazil to Great Wall Motors
On August 18th, 2021, Daimler reached an agreement with Great Wall Motors on the sale of its passenger car plant in Iracemápolis, Brazil. The representatives of both parties formally signed a contract in Sao Paulo, Brazil. In this transaction, CICC acted as the exclusive financial advisor to the seller.
This transaction is the largest Chinese-owned auto company's acquisition of a passenger car manufacturing plant in South America. Through this transaction, CICC successfully helped Daimler, the world's leading luxury car manufacturer, to optimize its global production network.
In this transaction, Daimler sold its passenger car plant in Brazil to Great Wall Motors Group to push forward the realignment of capacities within its global production network and to sustainably increase the efficiency in production at Mercedes-Benz AG. After the completion of the transaction, the Iracemápolis plant in Brazil, will accelerate Great Wall Motor's strategic landing and rapid development in the South American market, and further promote Great Wall Motor's transformation into a global mobility technology company. Despite the sale of the Iracemápolis plant, Daimler AG remains committed to Brazil, maintaining a strong presence with its truck production units.
Daimler AG (German stock code: DAI), headquartered in Stuttgart, Germany, is the global leader in the premium car segment and the world's biggest manufacturer of commercial vehicles with a global reach. The company's three business units include Mercedes-Benz AG (cars & vans), Daimler Truck AG (trucks & buses) and Daimler Mobility AG (financial & mobility solutions).
About Great Wall Motors
Great Wall Motors (Shanghai Stock Exchange stock code: 601633, Hong Kong Stock Exchange stock code 02333) is a world-renowned manufacturer of SUVs and pickup trucks. It was listed in Hong Kong and Chinese Mainland in 2003 and 2011, respectively. The company has four major brands including Great Wall, Haval, WEY and pure electric brand Euler. Up to now, Great Wall Motors has sold more than one million vehicles for five consecutive years, covering more than 60 countries and regions including Russia, South Africa, Australia, with more than 500 overseas dealership networks.
CICC leveraged its overarching network in China and across its international offices to ensure a successful deal in a challenging environment. Due to intense effort and close cooperation between the Chinese and German offices, CICC was able to identify Great Wall Motors as a well-suited potential buyer for Daimler’s Iracemápolis plant. Through direct communication with the management and decision-making levels of both parties, CICC guaranteed an efficient execution and smooth signing of this transaction. In this project, CICC coordinated the overall transaction process, and solved a number of transaction difficulties with its deep professional expertise. Despite the challenging pandemic environment with travel restrictions around the globe, CICC managed to smoothly steer a fully virtual transaction process, while CICC’s local teams stayed in close contact to both Daimler’s and Great Wall Motors’ management to resolve the core issues of both parties. CICC played an important role as a "matchmaker" in the subsequent negotiation process and helped Daimler build a trustful partnership with Great Wall Motors on this transaction.