Kuwait Sells A Quarter Of Its Mercedes Shares
- Written by : Ashton G. Curran
- Date Published : 2023-04-01
- Date Updated : 2023-04-01
- Category / Tag : mercedes
With a stake of 6.8 percent, Kuwait is the third-largest shareholder in Mercedes-Benz, after the state-owned company BAIC from China, with a 9.98 percent stake, and Geely owner Li Shufu, with a 9.69 percent stake.
The Kuwaiti State Fund has announced that it is selling its Mercedes-Benz shares to diversify its holdings in the company.
The shares sold have an estimated value of 1.4 billion euros, making this one of the largest divestments by a major shareholder in the luxury car brand.
Kuwait's decision to sell its shares in Mercedes-Benz comes as the country seeks to diversify its economy away from its traditional reliance on oil.
The Kuwaiti government has been actively seeking to diversify its investments and reduce its dependence on oil revenues, which have been declining in recent years.
While Kuwait's divestment from Mercedes-Benz is significant, it is unlikely to have a major impact on the luxury car brand.
The Chinese investors hold a much larger stake in the company and are likely to remain its largest shareholders for the foreseeable future.
Mercedes-Benz has a long history of success and innovation, with a reputation for producing some of the most luxurious and high-performance vehicles on the market.
The brand has also been at the forefront of the electric vehicle revolution, with its EQ brand leading the way in sustainable mobility.
The company's commitment to sustainability has been a major selling point for investors, with Mercedes-Benz recently announcing plans to phase out combustion engines by the end of the decade.
The company has set ambitious targets for electric vehicle sales, with a goal of having EVs make up more than 50 percent of its sales by 2030.
In addition to its commitment to sustainability, Mercedes-Benz has also been making significant investments in autonomous driving technology.
The company's latest S-Class sedan features an array of advanced sensors and cameras that allow it to drive itself in certain situations, and Mercedes-Benz has plans to continue developing its autonomous driving capabilities in the coming years.
Despite the challenges posed by the COVID-19 pandemic, Mercedes-Benz has remained a strong performer in the luxury car market.
The company's sales have rebounded strongly in recent months, driven in part by strong demand for its SUVs and electric vehicles.
Kuwait's decision to divest from Mercedes-Benz is a significant development, but it is unlikely to have a major impact on the luxury car brand.
The company remains well-positioned for future success, with a strong commitment to sustainability and innovation, and a growing lineup of high-performance and electric vehicles.
As the world continues to transition to a more sustainable future, Mercedes-Benz is likely to play a leading role in shaping the future of mobility.