Chinese automaker Geely bought 42 million shares of British luxury car maker Aston Martin from Lawrence Stroll, bringing its stake in the company to 17%.
The deal raised £95 million for Aston Martin, which is expected to be used to further develop the company. Shares of Aston Martin rose 22% on news of the deal Thursday.
The Chinese company has become Aston Martin’s third largest shareholder after Lawrence Stroll and Saudi Arabia’s sovereign wealth fund. In terms of the number of shares it owns, Geely has already overtaken Mercedes-Benz, a major technology partner of Aston Martin.
Under an agreement between Aston Martin and Geely, the Chinese company will get one seat on the board of directors and will not raise its share above 22% until August 2024.
For Lawrence Stroll, the partnership with Geely will expand its presence in the Chinese market and open flagship car dealerships in Shanghai and Beijing. Geely hopes to “create synergies” between Aston Martin and its brands, including Volvo, Polestar and Lotus.
“Geely provides us with an in-depth understanding of the Chinese market, an important strategic growth market, as well as the opportunity to access their technologies and components,” said Lawrence Stroll of the deal.
Source: F1 News
I am Christopher Clyde, an experienced journalist and content writer with a passion for sports. I have been writing about Formula 1 news for the past five years and am currently employed as an author at athletistic.com, one of the top sports websites in the US.
