Shanghai (ZXZC)- On Friday, Daimler AG confirmed in a regulatory filing that Li Shufu, the founder of Zhejiang Geely Holding Group, has become the largest shareholder investor in Daimler with a stake of 9.69 percent.

On Saturday, Geely Group Co., Ltd, owned by Li Shufu and administrated by Zhejiang Geely Holding Group, announced that it has become the largest shareholder of the German group after the closing of the deal, rather than the founder himself. The Chinese company promised to hold Daimler’s shares for long term. Currently, none of the subsidiaries of Geely Group or Zhengjiang Geely Holding Group has further plans to increase the stake in Daimler.

As to the sources of the funding, Geely said that it is via the overseas capital body that the company gained the shares. The deal won’t use the company’s domestic capital. At the current market price for Daimler shares, 9.69 percent stake is worth nearly RMB 57 billion, five times as many as the acquisition price for Volvo Cars.

Li Shufu, the founder, will fully abide by Daimler’s articles of incorporation and governance structure as well as respecting the culture and value of the company. “I feel honored to hold stakes in Daimler and will support the work of its management team,” the founder said.

Since it is difficult for a single company to win the increasingly fierce competition within the auto industry, companies should join hands with each other create synergy in technology, Li added. It is out of this consideration that Geely decided to invest in Daimler.