Geely Just Bought Another Big Chunk Of Aston Martin

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.