In its attempt to raise cash amid the deepening economic crisis and also to gain a long-term shareholder, Stuttgart, Germany-based Daimler AG - the manufacturer of Mercedes Benz cars - has struck a deal with the Abu Dhabi state investment fund Aabar Investments PJSC, whereby it will sell a 9.1 percent stake for 1.95 billion euros.

Aabar's investment in buying the new shares issued by Daimler will enable the investment fund to become the single largest shareholder in the Daimler group, surpassing the 6.9 percent Kuwait. In a statement, Daimler chairman Dieter Zetsche welcomed Aabar as the new major shareholder, and said that the move was "supportive of Daimler's corporate strategy."

Aabar, with the Abu Dhabi government-owned International Petroleum Investment Co as its biggest shareholder, had approached Daimler about the investment. The two companies would likely be cooperating on the development of electric vehicles and new materials for auto production, along with the setting up of a training center in Abu Dhabi.

Commenting on the Daimler-Aabar deal, Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen, said: "It's a win-win situation for both companies. It's an attractive price for Abu Dhabi, and it's good for Daimler to raise cash and get a long-term investor, because the next two years will be very hard."