Geely Increases Stake In Aston Martin To 17%

Geely now sits as the third-largest stakeholder of Aston Martin with 17%.

China’s single largest privately owned automative firm Geely has increased its stake of the famed Aston Martin brand this week. In fact, the firm has more than doubled its initial stake into said brand, now owning 17% of which to stand as the third-largest shareholder too.

To boost its share, Geely spent £234 million (nearly RM1.35 billion) to acquire 42 million ordinary shares from Aston Martin’s chairman Lawrence Stroll and his Yew Tree consortium – currently the largest stakeholder of Aston Martin Lagonda. In between sits Saudi Arabia's Public Investment Fund as the second-largest with an 18% stake. 

Aston Martin Vantage F1 Edition.

Said move also sees Geely stand ahead of Mercedes-Benz. Previously, the three-point star marque noted in Oct 2020 that would increase its share in Aston Martin Lagonda to as much as 20% by the end of 2023.

Through a new agreement, Geely is now barred from increasing its share of the brand until Aug 2024. However, it has been granted with a seat on the board through appointing a non-executive director to the Aston Martin Board of Directors as its shareholder representative.

Aston Martin DBS Superleggera.

“Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies," said chairman Stroll through a press release issued by Aston Martin today.

Additionally, Geely’s chief executive Daniel Li was also quoted by Financial Times recently saying that he loves the brand and seeks to create synergies. Attempts were made in the past by Geely to acquire Aston Martin including in 2020 when the brand went into receivership, but Stroll held the winning bid then.

Aston Martin DBX707 AMR23 Edition.

This shift in Aston Martin’s business and stakeholders structure comes just as the famed Gaydon-based marque is poised to refresh its portfolio starting with the DB11 replacement’s debut next week. The brand will introduce 8 new models by 2026, including a mysterious new car positioned above its traditional GTs.

On a larger scale, Geely’s involvement in Aston Martin sees its own portfolio growing bigger. Amongst the key brands listed in its operations include Volvo, Lynk & Co, Zeekr, Geometry, LEVC, Proton, Lotus, Radar Auto, as well as the rejuvenated smart sub-brand from Mercedes-Benz.