Zhejiang Geely Holding Group (Geely Holding), the parent company of Geely Cars, Volvo, and Lotus has acquired a 17% stake in Aston Martin Lagonda, parent company of Aston Martin cars, Lagonda, and the Aston Martin Formula 1 team.
The partnership will allow both companies to tap into each others' expertise in their respective segments and markets.
Geely Holding is now the third largest shareholder of Aston Martin Lagonda
Parent company of Geely cars buys stake in UK-based Aston Martin
At a glance
Geely Coolray, produced by Geely Cars under the Zhejiang Geely Holding Group.
Zhejiang Geely Holding Group (Geely Holding), China’s largest privately-owned automotive group, parent company of Geely Cars, has increased its shareholding in Aston Martin Lagonda Global Holdings plc. (Aston Martin) to circa 17% as part of a new relationship agreement with the luxury British performance brand.
Geely Holding will become the third largest shareholder in the iconic automotive company. The largest shareholders of Aston Martin are Canadian Lawrence Stroll’s Yew Tree consortium (18.3%), Saudi Arabia Public Investment Fund (circa 17%), Geely (circa 17%), and Mercedes-Benz Group (9.7%).
The Volvo XC60, produced by Volvo Cars, of which Zhejiang Geely Holding Group owns an 82% stake.
The increased shareholding in Aston Martin will form part of Geely Holding’s strategic investment portfolio, which includes long-term equity stakes in global automotive brands. These brands include Volvo (82%), Lotus (51%), Link & Co. (50%), Polestar (50.5%), Proton (49.9%), and stakes in many others.
As part of the equity increase in Aston Martin, Geely Holding will also be given the opportunity to appoint a Non-Executive Director to the Aston
Martin Board of Directors as a shareholder representative, as well as to appoint a second person as an observer.
The Aston Martin DBX707, produced by Aston Martin Lagonda Global Holdings plc. in which Geely recently acquired a 17% stake.
“Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team,” said Eric Li, Geely Holding Group Chairman. “Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential.”
“This announcement is a further significant step towards delivering our ambition for Aston Martin,” said Lawrence Stroll, Executive Chairman of the Board of Aston Martin. “Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success. Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies. Geely share our vision for Aston Martin and want to be a more significant shareholder. This transaction enables the creation of a long-term partnership with Geely - a relationship that I believe will bring very significant value for all of our shareholders over time.”
This new partnership is believed to be very beneficial for both brands. Besides the investment, Aston Martin will gain access to Geely’s R&D, and technology like hybrid systems, battery electric systems, and transmissions. Aston Martin can gain components from Geely to enhance production and more importantly, the support to grow its business in China, one of the world’s biggest auto markets. Aston Martin has a wealth of Formula 1 experience and technology, as well as expertise in the ultra-luxury sector, which may help Geely enhance its own or sister brand offerings.