Earlier last week, we reported the possibility of cooperation between BMW and Daimler, a deal that involved share swapping up to 7%. We were very reluctant to believe that the deal will actually go through since the first rumors around the deal mentioned that it was missing the seal of approval from Quandt family, BMW’s largest shareholder.
Quandt family owns 46% controlling stake and it is very involved in the day-to-day operation through Suzanne Quandt. Over the course of last six months, we also learned about a cooperation between BMW and Mercedes Benz (Daimler owned) which involves purchasing of common component, sharing lithium-ion technology and also the development of new engines together e.g hybrid and a possible V12.
The German media Der Spiegel confirmed today that the shares swap deal has been “killed” by the Quandts over fear of a hostile takeover by Daimler.
The companies will continue to work together on a smaller scale, but no further solid information have been provided.