September ends with the biggest news in the automotive world in the third quarter of the year: the Chinese manufacturer Geely managed to acquire the 7.6% of the British Aston Martin.
This Friday, September 30, the company of Chinese origin confirmed that it bought a stake in the company specializing in luxury sports cars and, although the amount of the transaction was not disclosed, Aston Martin said this week that it captured an investment of 650 million pounds (about 740 million dollars) that will help it balance its balance sheet.
According to the Chinese media, the company owned by Li Shufu could seek in the future to acquire more shares of the luxury brand that has been suffering for several years with very poor financial results, especially in the first half of 2022.
Between January and June, Aston Martin multiplied its losses by four, to 289 million pounds (about 328 million dollars).
“The idea is to be able to collaborate with Aston Martin to further their strategy of achieving long-term sustainable growth and more profit-making ability,” said Geely CEO Daniel Donghui Li.
Geely buys Aston Martin and increasingly controls the car industry in Europe
With this investment, Geely adds a presence in the European vehicle market.
Currently, the Chinese brand already controls the Swedish Volvo, with more than 81 percent of the shares.
It also owns 9.72 percent of the Mercedes-Benz holding company (its Chinese rival BAIC holds 10.1 percent), 50 percent of Smart and 50 percent of the electric car brand Polestar.
On the other hand, last week it became known that the French Renault is trying to sell Geely 40 percent of its combustion car business.
Geely had wanted to buy Aston Martin shares before. The luxury brand itself had recognized it.
According to Aston Martin, last year it rejected a proposal from the Chinese brand to enter its capital by contributing 1,350 million pounds.
At the time, Aston Martin said the offer was unattractive because it did not allow for an “compelling financing option and shareholder value creation opportunities”.
Nowadays, Geely is valued at 14 billion dollars.
After the announcement, Aston Martin’s shares began a process of volatility from which, as of 8:30 a.m. Mexico time, they have not yet come out: first they rose 6.5 percent, and then fell 3.9 percent.
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