The Chinese concern is now Aston's third largest shareholder.
If you own shares in Aston Martin Lagonda, you should look at your portfolio, as they have just jumped by around 25%. The jump follows Geely announcing it has increased its shareholding in Aston Martin Lagonda to 17% of the company. With an investment of around $292 million, the Chinese automotive giant has doubled its interest in Aston Martin to make itself the third biggest shareholder behind Lawrence Stroll and Saudi Arabia's Public Investment Fund.
As part of the investment deal by Geely, it can't increase its share again until 2024. In the meantime, however, Geely will appoint a Non-Executive Director to the Aston Martin Board of Directors as a shareholder representative and appoint a second person as an observer.
It seems to be a race to get a large piece of Aston Martin as Mercedes-Benz has expressed its desire to own 20 percent of Aston by 2024, making it the third largest shareholder.
If you're unfamiliar with Geely, the Chinese automaker has a huge portfolio of acquisitions, including brands in mainstream America and Europe like Volvo, Polestar, Lotus, London Electric Vehicle Company, and Proton. It also owns half of Smart next to Mercedes.
The move from Geely will benefit Aston Martin in a number of ways, including assisting it in breaking through to the Chinese market. This endeavor will also be bolstered by a slew of new products - eight new cars in the news two years - including the replacement for the aging DB11, which is due to be announced next week. China is the largest car market in the world, and is a crucial piece of the puzzle for any automaker.
"This announcement is a further significant step towards delivering our ambition for Aston Martin," says Lawrence Stroll. "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 shares our vision for Aston Martin and wants 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."
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