Daimler announced that it would be inking a new strategic cooperation agreement with BAIC Motor. BAIC Charmain Xu Heyi said both companies will sign the agreement on Tuesday. This was according to a report published by Reuters.

Under the terms of the new deal, Daimler will become an important partner of its Chinese partner BAIC. Daimler will also have shareholding rights to BAIC. Xu said this during a Mercedes-Benz engine plant opening ceremony in Beijing.

Daimler is an international automotive company. The group produces premium cars and commercial vehicles for its clients worldwide.  The firm's brand portfolio includes Mercedes-Benz, Western Star, Freightliner, Fuso, BharatBenz, Thomas Built Buses, and Setra. This was according to the company's website.

BAIC is a corporation that sells, imports, and exports technology, automobile, and mechanical products. The company was founded in 1988. Presently, it is based in Beijing, China, according to its company profile.

Daimler had earlier announced its intention to purchase a 12% stake in BAIC Motor. The company also planned to take two posts on the board, Reuters reported.