The International Petroleum Investment Company (IPIC), a Government energy investment fund, has assumed majority ownership of Aabar investments a day after the firm bought a stake in one of the world's largest carmakers. IPIC converted the second tranche of a Dh6.6 billion (US$1.79) bond it bought from Aabar in September, increasing its ownership stake from 36 per cent to 71 per cent, Aabar said in a statement.
IPIC's full conversion of the bond will boost Aabar's capital pool hours after it agreed to spend Dh9.73 billion to buy a 9.1 per cent stake in Daimler, the maker of Mercedes Benz.
"We are delighted to have the opportunity to make this investment and are excited by the commercial potential of our partnership,†Khadem al Qubaisi, the chairman of Aabar, said yesterday.
Mr. al Qubaisi is also the managing director of IPIC, and has described Aabar as a mechanism to diversify the energy fund's investments away from energy.
Aabar is now the largest shareholder in Daimler. The two firms said yesterday that they would work together to develop electric cars and new types of material used in car manufacturing, as well as establish a training centre in Abu Dhabi to prepare Emiratis for work in the car manufacturing industry.
Aabar will pay €20.27 (Dh100.88) per share. Daimler plans to issue more than 96 million new shares in the company to Aabar, representing a 10 per cent increase in total share capital.
Mercedes Benz is the 13th largest car manufacturer, and the world's largest maker of lorries.
In addition to Mercedes, Daimler owns Maybach, the ultra-luxury automobile series and Smart, a compact two-seat car that has proved popular in Europe. – The National
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