Daimler AG has sold 40% of its equity interest in Tesla Motors to its new major shareholder Aabar Investments PJSC (Aabar), of Abu Dhabi, in their first joint strategic project. The investment allows Daimler and Aabar to leverage their shared interest in the development of low-CO2 drive systems, according to a statement issued by Daimler.
In May, Daimler AG acquired an equity interest of just under 10% in Tesla Motors Inc. for about $50 million (€36 million). (Earlier post.) Already at that time, Daimler and Aabar both wanted to invest jointly in Tesla. After the clarification of contractual details, they are now implementing that plan.
When we acquired our stake in Daimler in March we identified a number of potential areas for cooperation between our two businesses. One of these was a desire to focus on the development of electric vehicles and projects aiming at the reduction of CO2-emissions. Our joint involvement with Daimler in Tesla is completely in line with this strategy, and marks an important step in the continuing development of our partnership.—His Excellency Khadem Al Qubaisi, Chairman of Aabar Investments PJSC
On March 22 of this year, Aabar acquired 9.1% of the share capital of Daimler AG with a total investment of €1.95 billion (US$2.72 billion). In connection with Aabar’s entry as a major Daimler shareholder, the two companies issued a letter of intent stating that in addition to the equity investment, other joint strategic projects would be initiated, including:
- Electric vehicles with a particular focus on projects aiming at the reduction of CO2-emissions
- Development and/or production of innovative compound materials to be used in automotive manufacturing
- Social projects such as the establishment of a training centre in Abu Dhabi to educate young talent for positions in the automotive industry
Aabar is an investment company headquartered in Abu Dhabi and is listed on the Abu Dhabi Securities Exchange. It directly invests in various sectors including energy, infrastructure, real estate, automotive and financial services companies. Its largest stakeholder is the International Petroleum Investment Company (IPIC), which in turn is wholly owned by the Government of the Emirate of Abu Dhabi.