# Mercedes-Benz to buy back up to 4 billion euros in shares by 2025
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-17
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Mercedes Benz announces 4 billion euro share buyback plan in 2023
Meta Description: Mercedes Benz to buy back up to 4 billion euros of shares from 2023, welcomed by analysts. Beijing Automotive Group and Geely to divest shares to keep stakes
URL: https://financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025html

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BERLIN (Reuters) -Mercedes Benz said on Thursday it plans to buy back up to 4 billion euros ($4.28 billion) of its shares over two years from March 2023, in a move welcomed by analysts ahead of the carmaker reporting full-year earnings on Friday.

Shareholders Beijing Automotive Group and Geely had agreed to divest their shares on a pro-rata basis concurrently with the share buyback to keep their stakes in the company below 10%, the statement added.

The two Chinese companies are the largest single shareholders in Mercedes-Benz, together holding nearly 20% of the carmaker.

Under [German financial regulation](https://www.financedigest.com/german-regulator-hands-ey-2-year-audit-ban-over-wirecard-scandal-handelsblatt.html "German regulator hands EY 2-year audit ban over Wirecard scandal – Handelsblatt"), shareholdings beyond a 10% threshold must be disclosed to regulators for scrutiny.

Analysts expected the company to announce a share buy back programme to coincide with the publication of Friday’s fourth-quarter report given the company’s high liquidity in automotive – estimated by BofA Global Research to be over 25 [billion euros](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") for 2022 – and strong free cash flow.

We see this as a positive step showcasing an [improved capital allocation strategy,” Daniel Roeska of Bernstein Research](https://www.financedigest.com/nvidia-shows-new-research-on-using-ai-to-improve-chip-designs.html "Nvidia shows new research on using AI to improve chip designs") said in a note.

($1 = 0.9354 euros)

(Reporting by Riham Alkousaa, Victoria Waldersee; Editing by Susan Fenton and Alistair Bell)


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