Economy

China's Geely in talks to acquire stake in Aston Martin

China's Geely in talks to acquire stake in Aston Martin”

China Geely Automobile is in talks with Aston Martin officials to put together a deal, various media reports said.

Geely is conducting due diligence as it looks at taking a stake in the 107-year-old United Kingdom firm, which warned earlier this week its 2019 profits would nearly halve due to weak European markets.

A technology partnership was a possible alternative to a full investment, the FT added.

"People familiar with the matter" told Bloomberg that Geely is also interested in purchasing a piece of the pie.

Geely, which owns Britain's Lotus and Sweden's Volvo as well as a stake in Daimler, is one of several groups in discussions about investing in the business. The shares of the company went into a tailspin after the profit warning falling almost 16 per cent.

"We also remain in discussions with potential strategic investors, which may or may not involve an equity investment into the company", he said.

According to Reuters, amid rumours emerged of a significant growth in the value of shares of Aston Martin.

It is unclear whether Geely will pursue an Aston investment if Mr. Stroll makes an investment first.

Daimler, which owns a 5% stake in Aston Martin and supplies the carmaker with Mercedes-AMG engines, supports efforts by the British carmaker to secure its long-term future, the source said. If not renewed, it opens the door for a motorsport collaboration with Racing Point. Currently, the manufacturer hopes to debut in the history of the company crossover Aston Martin DBX. The company has already taken out a £120m loan, of course, and qualified for a subsequent £80m when it hit 1,400 orders for the SUV - although those sums come accompanied by interest rates of 12 and 15 respectively.

Aston declined to comment beyond the statement issued earlier this week. Geely did not immediately respond to a request for comment.



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