Mercedes becomes the second-largest shareholder in Aston Martin

© Mercedes-Benz AG

Mercedes-Benz is set to increase its stake in Aston Martin to 20% and increase the level of technical cooperation between the two companies.

The announcement has no bearing on Aston Martin’s Formula 1 entry and is mainly focused on road cars.

As part of the deal Mercedes will give Aston Martin access to “a range of world-class technologies, including powertrain architecture (for conventional, hybrid, and electric vehicles) and future oriented electric/electronic architecture, for all product launches through to 2027.”

“Access to these technologies will be granted in exchange for new shares in Aston Martin, issued in several stages over the next 3 years, up to a total value of GBP 286 million,” said Mercedes’ statement.

“Mercedes-Benz AG’s current shareholding stands at 2.6% of Aston Martin’s common equity. The new shares to be issued will take Mercedes-Benz AG’s holding up to a maximum of no more than 20.0%.

“Mercedes-Benz AG has no intention to increase its holding in Aston Martin beyond this level.”

It’s interesting to note that Mercedes F1 team boss Toto Wolff earlier this year also purchased a stake in the British manufacturer, but as a private investment.

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Aston Martin owner and executive chairman Lawrence Stroll talked about the importance of the deal between Aston Martin and Mercedes.

“This is a transformational moment for Aston Martin,” the Canadian said.

“It is the result of six months of enormous effort to position the company for success to capture the huge and exciting opportunity ahead of us. I am extremely pleased with the progress to date and that we are ahead of plan on timing, despite operating in these most challenging of times.

“Today, we take another major step forward as our long-term partnership with Mercedes-Benz AG moves to another level with them becoming one of the company’s largest shareholders.

“Through this new expanded agreement, we secure access to world-class technologies to support our long-term product expansion plans, including electric and hybrid powertrains and this partnership underpins our confidence in the future.”

Stroll announced that Zelon Holdings and Permian Investment Partners have also become shareholders.

“I, and my co-investors, are fully committed to delivering this plan. And our participation in this new substantial round of financing demonstrates both our confidence in the prospects for the business and our commitment to the future success of Aston Martin.

“Everything I’ve just described is absolutely game changing. Of course in addition we have the significant marketing platform of an Aston Martin works team returning to F1 next year.

“We now have the right team, partner, plan and funding in place to transform the company to be one of the greatest luxury car brands in the world.”

Aston Martin’s CEO Tobias Moers also gave his comments on the significance of the Aston Martin – Mercedes partnership.

“Today’s expansion of our partnership with Mercedes-Benz AG is a critical step towards achieving our goals for Aston Martin,” Moers said.

“The capabilities of Mercedes-Benz AG 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.”

Head of product strategy at Mercedes-Benz Cars Wolf-Dieter Kurz says the technology exchange will be made on “commercial terms.”

“We already have a successful technology partnership in place with Aston Martin that has benefited both companies,” said Kurz.

“With this new expanded partnership, we will be able to provide Aston Martin with access to new cutting-edge powertrain and software technologies and components, including next generation hybrid and electric drive systems.

“Access to this technology and these components will be provided in exchange for new shares in Aston Martin. The supply arrangements for these new technologies will be on 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.”

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