Mercedes-Benz to increase stake in Aston Martin to 20 per cent

Ruben Hill
October 28, 2020

Aston said the increase in Mercedes-Benz's stake, from 2.6% now, would take place in several stages as part of a wider issue of 250 million shares at 50 pence each.

Aston, which has started deliveries of its first sport utility vehicle, the DBX, said on Tuesday it swung into an adjusted core loss of 29 million pounds in the third quarter, versus a profit of 43 million pounds past year.

Aston Martin also said it aims to grow its revenues to £2 billion and record earnings of around £500 million in five years' time.

The main terms and conditions for the first technology package have already been agreed upon and it is valued at £140 ($183 / €155) million.

It comes months after Formula One team owner Lawrence Stroll led a takeover of the United Kingdom sports vehicle manufacturer.

"This is a transformational moment for Aston Martin", said Aston Martin executive chairman Lawrence Stroll.

"We look forward to continuing to work together with Aston Martin and we wish the company every success in its next stage of growth".

"The capabilities of Mercedes-Benz technology will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently in the areas that truly differentiate our products".

The deal will see an existing supply agreement between the two firms, in place since 2013, expanded to give Aston Martin access to key Mercedes' technology, including hybrid and electric drive systems. Additional shares will be issued in several stages over the next three years, Mercedes parent Daimler said in a press release.

The companies didn't go into many specifics, but confirmed "Aston Martin requested access to certain engines and powertrains as well as powertrain software, E/E architecture and various other components".

Other reports by Click Lancashire

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