The automotive world’s acquisitions game continues, with the latest deal happening between China’s Geely Holdings (Zhejiang Geely Holding Group Co Ltd) and British sports car maker Lotus Cars. The bid also sees the Chinese automotive giant taking a 49.9% stake in Malaysian national carmaker Proton.
According to a report by Business Insider, Geely will acquire a 49.9% stake in DRB-HICOM-owned Proton Holdings. It also sees Lotus, which is owned by Proton after the latter was purchased in 1996, being bought for $130 million. This gives the Chinese carmaker a 51% stake in the British sports car maker.
The deal will give Lotus the fresh capital it needs to go ahead with its future plans to build its trademark sporty offerings. For its part, Lotus can bring its knowledge of lightweight technology to the Geely table, allowing the Chinese giant to utilize this in its products.
When it comes to Proton, on the other hand, Malaysia’s National Car maker can easily tap into the technologies and platforms of its Chinese parent, as well as sell its products in Geely’s extensive market base. And of course, Geely can help revitalize Malaysia’s pride.
In case you didn’t know, Geely also owns Volvo Cars and The London Taxi Company. It has likewise recently developed a lightweight EV platform that will soon be used on a number of low-emissions vehicles. Volvo, meanwhile, has likewise seen a resurgence since it was acquired by Geely.
