German automaker Mercedes-Benz has acquired a 3% stake in Chinese intelligent driving technology firm Qianli Technology, becoming its fifth-largest shareholder after taking ownership of 136million shares.

The shares were transferred from existing shareholder Lifan Holdings after the deal received regulatory compliance confirmation from the Shanghai Stock Exchange, with the transaction completed on Dec.23, according to company disclosures.

The investment gives Mercedes-Benz a foothold in the Chongqing-based firm, which specializes in intelligent assisted-driving systems and smart cockpit technologies.

Following the transaction, Lifan’s holdings in Qianli declined from 619million shares to 483million shares, reducing its ownership stake from 13.68percent to 10.68percent. Mercedes-Benz Shanghai Digital Technology, a wholly owned unit of the German carmaker, now holds 136million shares, representing 3percent of Qianli’s equity, and has committed not to reduce its stake for 12months from the date of registration.

While the final transaction price has not been officially disclosed, Qianli said in a filing in late September that Lifan planned to transfer the shares at 9.87yuan per share (about $1.40). Based on that price, the investment would be worth roughly 1.3billionyuan (about $185million).

The deal comes as global automakers step up partnerships and investments in Chinese technology firms to accelerate the development of advanced driver assistance and in-car digital systems, amid intensifying competition in the smart vehicle market.