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Kuwait sovereign fund to offload stake in Mercedes-Benz

By Pramod Kumar
Creative Commons
Kuwait Investment Authority is the third-largest shareholder in Mercedes-Benz

Kuwait Investment Authority (KIA), a sovereign wealth fund, plans to reduce its stake in the German luxury carmaker Mercedes-Benz by selling 20 million shares.

The Kuwaiti fund is the third-largest shareholder in Frankfurt-listed Mercedes-Benz.

At price guidance of €69.27 ($18.86) per share, KIA may raise €1.385 billion ($1.5 billion), which will reduce its stake to less than five percent from the current 6.84 percent, Reuters reported.

“The KIA is committed to continuing the successful partnership with Mercedes-Benz and will remain a key shareholder,” the German carmaker said in e-mailed comments.

In September 2022, Bloomberg reported that KIA was planning to move the management of a $7 billion fund from London back to its home country.

The wealth fund will oversee the satellite fund from its Kuwaiti headquarters instead of the London-based Kuwait Investment Office. However, the fund will remain housed in the UK.

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