Chinese Automaker Geely Ups Its Stake in U.K.'s Aston Martin

Geely doubles its stake in Aston Martin to 17% at a cost of £234 million ($291 million), giving it a non-executive seat on the board and extending its financial influence over the British sports car maker.

The move makes the Chinese automaker the third-largest shareholder in Aston Martin, behind the Saudi Arabian Public Investment Fund, which commands an 18% shareholding, and the Yew Tree Consortium, currently Aston Martin's largest shareholder at 21%.

Geely’s stake places it ahead of Mercedes-Benz in the shareholding structure of Aston Martin.

Geely purchased 42 million shares from the Lawrence Stroll-controlled Yew Tree Consortium and was issued 28 million new shares in the deal announced May 18. Stroll (pictured, below left), a Canadian billionaire businessman, is executive chairman of Aston Martin and owner of the Aston Martin F1 Team.

Lawrence Stroll

The Chinese automaker can also increase its stake in the British luxury marque if a third party, not acting in the interests of Geely, announces a formal offer for Aston Martin.

The Yew Tree Consortium has agreed not to buy or sell any ordinary shares in Aston Martin for the next 90 days and will not exceed a 25% stake in the company until August 2024.

Revenue at Aston Martin grew 26% to £1.35 billion ($1.67 billion) last year, largely because of price increases. Its core average per-unit selling price in 2022 rose 18% to £177,000 ($219,400). The British company reported an adjusted operating loss of £118 million ($146.3 million) for the year ended Dec. 31, 2022.

Known throughout its storied history for sports cars. Aston Martin’s best selling model today is the DBX SUV.