A worker polishes the sign at the Chrysler display at the 2004 North American International Auto Show in Detroit, Michigan. [AFP]

China's Beiqi Foton Motor said it had sealed a 105-million-dollar share sale to DaimlerChrysler as part of a new alliance with the auto giant.

Shareholders have approved the transaction, to involve selling 297 million shares priced at 2.75 yuan each for a total of worth 817 million yuan (105 million dollars), Foton said in a statement.

On completion of the transaction, the American-German automaker DaimlerChrysler is expected to become the second largest shareholder of Beiqi Foton, with a 24-percent stake.

The private placement agreement was announced in November.

Foton also signed a preliminary arrangement with DaimlerChrysler covering medium and heavy-duty truck projects.

The cooperation will "sharpen the competitive edge of its current product line-up... and increase its profitability," Foton said.

The two partners are also considering a distribution role for Beiqi Foton for Mercedes Benz trucks in China and for Foton to export light-duty trucks via DaimlerChrysler's overseas sales network, it said.

The deals are still subject to official approval.

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