BYD Company (OTCPK:BYDDF) acquired full control of its joint venture with Mercedes-Benz (OTCPK:MBGAF) in China as it bought the remaining 10% stake in Shenzhen Denza New Energy Automotive, according to a CnEVPost post.
The acquisition was finalized on September 14, 2024, and follows BYD’s (OTCPK:BYDDF) previous increase in ownership from 50% to 90% in 2022, the report said.
Denza was established by BYD (OTCPK:BYDDF) and Mercedes (OTCPK:MBGAF) in 2011, with each owning 50% stake. However, poor sales led to Mercedes (OTCPK:MBGAF) reducing 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 amid the backdrop of increasing trade tensions between China and Europe, as the EU contemplates imposing up to 38.1% tariffs on Chinese electric vehicles.
Denza targets the premium EV market and has seen a resurgence in sales, particularly with its D9 minivan, a bestseller in its category.
