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BEIJING, October 7 (TMTPOST)— Recent deal proved Geely to be one of Chinese auto giants that continued overseas M&A activities even the whole industry under the shadow of a looming global economic recession.
Source: Visual China
Zhejiang Geely Holding Group acquired a 7.60% of stakes in Aston Martin Lagonda Global Holdings plc, a legendary U.K. automaker well-known by luxury cars in the ‘James Bond’ film series. With rich experiences in supports for investee companies’ transformation and deep pocket of technology offerings in electric traction and intelligent connected vehicle (ICV), Geely can help Aston Martin achieve more successes in the future, according to Geely CEO Donghui Li. Li said his company looks forward to exploring potential opportunities to engage and collaborate with Aston Martin as it continues to execute its strategy to achieve long term, sustainable growth and increased profitability.
In its 109-year history, Aston Martin experienced bankruptcies and changed owners several times. The luxury brand hasn’t been out of woods yet as it posted record high pre-tax losses of 285 million in the first half of 2022, when it just sold 2,676 vehicles.
As a potential buyer with interests in Aston Martin long before the recent deal, Geely only notched some of shares so it is noticeable for any future development, Zhang Junyi, a partner in Oliver Wyman"s Shanghai office, commented. Zhang expected cooperation of two companies can be win-win since Aston Martin needs Geely’s help for its turnaround plan while acts as a good complement for the Chinese auto company.
The deal suggests Geely maintains its strategy in auto industry through overseas M&A spree. It spent US$1.8 billion to take full ownership of Volvo Cars in March, 2010. In June 2017, it acquired 51% shares of British luxury sports car brand Lotus from conglomerate DRB-HICOM Bhd, a major shareholder of Malaysia"s national car company, Proton. Less than a year later, it became the largest shareholder of Daimler AG with takeover of a stake worth of US$9 billion. In May, 2022, it agreed to pay about US$200 million to acquire 34.02% stake in Renault Korea Motors, a South Korean unit of the largest automobile company in France.
