MercoPress. South Atlantic News Agency

Abu Dhabi sovereign fund takes over 9.1% stake of Daimler-Benz

German car and trucks manufacturer Daimler- Benz sold a 9.1% stake to an Abu Dhabi sovereign investment fund. The fund, Aabar Investments, will invest 1.95 billion Euros becoming the biggest shareholder.

The move comes after Daimler reported a net loss of 1.53 billion Euros in final quarter of 2008 as the global downturn hit demand for luxury cars and trucks.

It will strengthen Daimler's finances and make it less vulnerable to unwanted takeover attempts.

Aabar's chairman Khadem Al Qubaisi said that Daimler was an iconic brand and had an excellent reputation.

Daimler and Aabar said they would co-operate on the development of electric vehicles and new materials for auto production as well as establish a centre to train young people in Abu Dhabi for the auto industry.

“We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy” said Daimler chairman Dieter Zetsche.

“We’ve gained a long term shareholder, we will strengthen our financial situation and we’ve gained a strong partner”, added Zetsche.

Aabar Investments thus becomes the leading shareholder of Damiler-Benz, ahead of Kuwait which holds a 6.9% stake.