Geely in talks to take stake in Aston Martin, reports say

Reuters – January 10, 2020 12:26 PM

China’s Geely Automobile Holding is in talks with Aston Martin management and investors about taking a stake in the British luxury carmaker, according to a source familiar with the discussions and the Financial Times on Friday.

Geely is conducting due diligence as it considers taking a stake in the 107-year-old U.K. firm, the FT said, citing four people familiar with the discussions.

The talks come almost a month after Aston Martin confirmed it was in early-stage talks with potential investors as it launched a review of funding.

Earlier this week, Aston Martin warned its 2019 profits would fall almost by half due to weak European markets.

Geely sees potential synergies on technologies and vehicle platforms between Aston Martin and its own Lotus brand, the source familiar with the discussions told Reuters.

A spokesman for Aston declined to comment on whether the company is in talks with Geely, and reiterated a statement from Tuesday.

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

A spokesman for Geely Europe declined to comment.

Daimler, which owns a 5 percent stake in Aston Martin and supplies it with Mercedes-AMG engines, supports efforts by the British carmaker to secure a long-term future, the source said.

Daimler declined to comment.

Geely’s chairman, Li Shufu, owns a 9.69 percent stake in Mercedes-Benz parent Daimler. Geely and Daimler run the Smart city car brand as a joint venture out of China. (READ MORE)