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Kuwait’s sovereign wealth fund reduces its stake in Mercedes-Benz by almost 2%.

Kuwait’s sovereign wealth fund reduces its stake in Mercedes-Benz by almost 2%.

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The sovereign wealth fund of the Gulf State Kuwait Investment Authority (KIA) sold yesterday 20 million shares of Mercedes-Benz. Following this operation, the German brand saw its shares fall.


Sovereign wealth fund Kuwait Investment Authority (KIA), a historic investor in Mercedes-Benz since 1974, has sold 20 million shares in an accelerated offering, reducing its stake in the German company by 1.87%.


Kuwait Investment Authority now owns 4.97% of Mercedes’ share capital, making it the third largest shareholder, with about 53 million shares. According to Bloomberg, this sale of shares is an “effort to diversify” the asset portfolio of the Kuwaiti sovereign wealth fund.


The sale of the sovereign wealth fund’s shares was concluded for about 69.27 euros per share, which represents an amount of about 1,385 million euros, according to Banco Sabadell.


KIA’s decision to reduce its stake in Mercedes Benz comes a month and a half after the company announced its results for last year, with a net profit of 14,809 million euros, 34% more than 2021. This decision could therefore be rather related to the uncertain growth prospects of the automotive sector and the evolution of the global economic situation.


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Mercedes Benz share price down



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