FRANKFURT, Sept 20 (Reuters) - Mercedes parent DaimlerChrysler has taken a controlling stake in Ilmor, the British company that designs and builds McLaren's Formula One engines.
The German carmaker said in a statement on Friday that it was raising its holding from 25 to 55 percent and planned a complete takeover by 2005 for an undisclosed price.
The company will be renamed Mercedes-Ilmor and will incorporate the technical motor sport development team from Stuttgart, Mercedes' home base.
"The acquisition of a majority holding in Ilmor and the new structure of Mercedes-Ilmor demonstrate the determination for our company to create even sounder foundations for the activities of Mercedes-Benz in Formula One in the long term," said Mercedes chief Juergen Hubbert.
Ilmor is named after co-founders Mario Ilien and the late Paul Morgan, who died in a plane crash in May last year.
DaimlerChrysler also own 40 percent of TAG McLaren Group and the Formula One team has won 31 races since the start of their cooperation with Mercedes in 1995.