Abu Dhabi is Mercedes-Benz's "second home," according to Dieter Zetsche, chairman of Daimler and head of Mercedes Cars.
The super-rich oil state on the Persian Gulf is now the second-largest shareholder in the company Zetsche leads.
Abu Dhabi sits on about 8 per cent of the world's oil. It pumps nearly three million barrels a day while collecting an estimated $65-billion (U.S.) in revenue a year. As a result, Abu Dhabi has the world's largest state-owned investment fund with assets estimated as high as $875-billion.
Aabar Investments, the Abu Dhabi state-controlled fund, paid $2.7-billion for a 9.1-per-cent stake in Daimler in March, 2009, and aims to increase the holding to 15 per cent.
As the biggest shareholder in Daimler, it will take a seat on the company's supervisory board in 2010. The second-largest Daimler shareholder, by the way, is the Kuwait Investment Authority, which holds a 6.9-per-cent stake.
Abu Dhabi is investing its oil money in interesting and controversial ways. In 2007, it paid $5-billon (Canadian) to take over Calgary-based PrimeWest Energy Trust. This month, it put up $280-million (U.S.) for 32 per cent of Richard Branson's commercial space project Virgin Galactic. Aabar Investments says this will eventually enable flying from Abu Dhabi to Los Angeles in two hours.
Back on the ground, Daimler went back to profitability in the third quarter and Zetsche says each quarter in the coming year will be better than the one before.
That gives him a little breathing room, which he will use as he manages major new shareholders and tries to find new partners to reduce expenses. He spoke about the twin challenges in a year-end, one-on-one interview.
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