Geely has increased its shareholding of Aston Martin to 17 per cent.
Chinese car giant Geely has purchased more shares in Aston Martin, becoming the third-largest owner of the British brand in the process. Lawrence Stroll’s Yew Tree consortium remains the firm’s largest shareholder.
Back in September 2022, Geely secured 7.6 per cent of Aston Martin Lagonda, helping to raise the £654 million (AUD$1.22 billion) the firm needed. The two companies have agreed a sale of more shares, bumping up Geely’s ownership stake to 17 per cent, while Aston Martin receives £95m (AUD$178m) in cash. Saudi Arabia’s Public Investment Fund retains its second shareholder spot with 18 per cent.
Both Yew Tree Consortium and Geely have agreed a “standstill” not to sell or acquire any more shares in Aston Martin until August 2024, although Aston Martin states if an offer is received by either company and recommended by the board of directors, that standstill will “fall away”.
Geely already has control over a few car companies in Europe, either having stakes in or owning Volvo, Polestar, LEVC, Smart and Lotus. Aston Martin previously said that the money raised would be “used to meaningfully de-leverage the balance sheet, strengthen and accelerate long-term growth”.
Executive Chairman of Aston Martin, Lawrence Stroll commented on Geely’s investment: “This announcement is a further significant step towards delivering our ambition for Aston Martin. They [Geely] offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components.”
Eric Li, Chairman of Geely, also spoke of his optimism for the future of Aston Martin: “Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team.”
It’s not been revealed if Geely will provide Aston Martin with any parts of costs for developing cars. Mercedes already has a partnership in place for the supply of powertrains including internal-combustion engines, hybrids and even pure-electric units until 2027. However, components such as interior technology and safety systems may come from the Chinese brand in the future.