BEIJING/HONG KONG (Reuters) – Daimler AG plans to invest in Farasis Energy’s planned $480 million IPO, aiming to ensure a stable supply of batteries from the Chinese firm as it ramps up electric vehicle production, three people familiar with the matter said.
The plan has yet to be finalised and is subject to change, the people said, speaking on condition of anonymity as the discussions were private. The size of the potential investment was not immediately clear, they added.
The two firms struck a deal last year for Farasis to supply Daimler with lithium-ion battery cells and Farasis is building a factory in Germany.
Daimler and Farasis declined to comment on the potential IPO investment.
Eleven-year old Farasis gained approval last week to raise about 3.44 billion yuan in an initial public offering on China’s Nasdaq-like STAR board. The float, which is slated for the current quarter, could value the company at up to 30 billion yuan ($4.2 billion), sources have previously said.
Like many other global automakers under pressure to meet tougher emission standards in Europe and China, the German maker of Mercedes-Benz vehicles plans to ramp up EV production. It currently procures batteries from China’s CATL 300750.SZ> for its China-made EQC electric car.
Automakers are keen to build deeper relationships with battery makers to manage supply, either by investing in the companies or signing long-term contracts.
Sources said in January that Volkswagen AG was looking at taking a 20% stake in Chinese battery maker Guoxuan High-tech Co Ltd 002074.SZ>.
Farasis, which is based in Ganzhou city in the eastern province of Jiangxi, will use the IPO proceeds for a lithium-ion battery project and to replenish its working capital, according to its preliminary prospectus.
The company, which has plants in Ganzhou and Zhenjiang, also counts China’s BAIC BluePark New Energy Technology Co Ltd 600733.SS> and Great Wall Motor Co Ltd 601633.SS> as major customers.
($1 = 7.1303 Chinese yuan)
(Reporting by Zhang Yan and Yilei Sun in Beijing and Julie Zhu in Hong Kong; Additional reporting by Edward Taylor in Frankfurt; Editing by Edwina Gibbs)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
