Daimler sells €2B stake to Abu Dhabi

Daimler, the German maker of Mercedes-Benz cars, will sell about €1.95 billion worth of shares to an Abu Dhabi state investment fund.

Aabar Investments will buy a 9.1% ($2.7 billion) stake from Daimler to become the biggest shareholder of the Emirate at a time of severe economic crisis in the global auto industry. 

The move came after Daimler reported a net loss of 1.53 billion euros ($1.93 billion) for the fourth quarter of 2008, after an unexpected fall in Mercedes-Benz sales. 

The car industry worldwide has been suffering the worst slump in decades. 

Daimler and Aabar Investments said in a statement that the planned injection of cash would "further strengthen Daimler's sound capital base and offer additional flexibility to invest in new automotive technologies". 

They plan to establish cooperation with the aim of developing low-carbon-emission electric vehicles and new materials for auto production as well as setting up an auto industry training center for young people in Abu Dhabi. 

"We are delighted to welcome Aabar as a new major shareholder that is supportive of our corporate strategy," said Daimler chairman Dieter Zetsche.