Aston Martin’s fortunes seem to be turning towards the bright side. Hot off the press from a much needed cash injection from billionaire and F1 team owner Lawrence Stroll, which saw him acquiring a 16.7% stake in the company, Mercedes-Benz and the Aston Martin also announced a renewed “strategic technology” partnership, which will see the German carmaker increase its stake from 2.6% to up to 20%.
The agreement will see shares being issued in several tranches over the next three years, up to a total value of GBP286 million (approx. RM1.55 billion). The first tranche is valued at a GBP140 million (approx. RM760 million), which will increase the German carmaker’s equity in the company to 11.8%.
The partnership between the two companies begun in 2013, where Mercedes-Benz received a 5% equity in exchange of the supply of the AMG V8 powerplants and electrical components – which later became 2.6% following Aston Martin’s Initial Public Offering (IPO) and subsequent funding rounds. Mercedes-Benz said in the press release that it has no intention to increase its shares in the British sportscar maker beyond 20%.
While not officially part of the partnership, former Mercedes-AMG CEO Tobias Moers also recently replaced Andy Palmer as the CEO of Aston Martin, following the investment from Lawrence Stroll.
Mercedes-Benz Head of Product Strategy, Wolf-Dieter Kurz said, “We already have a successful technology partnership in place with Aston Martin that has benefited both companies. With this new expanded partnership we will be able to provide Aston Martin with access to new cutting-edge technologies and components, including next generation hybrid and electric drive systems.
“The supply arrangements for these new technologies will be on agreed commercial terms. We look forward to continuing to work together with Aston Martin and we wish the company every success in its next stage of growth.”