© Daimler AG
We don’t like to comment on rumours, but because of the great interest from Mercedes fans, here is what is known so far about Toto Wolff’s Aston Martin controversy.
There have been numerous news reports swirling around stemming from an article in Le Journal de Montreal that said that Toto Wolff could be investigated for “possible suspicion of insider trading”, related to his private acquisition of Aston Martin shares in 2020.
As their source they are citing Germany’s federal financial supervisory authority BaFin, who apparently investigated the matter. Apparently BaFin has referred the case for review to the UK Financial Conduct Authority (FCA), because Aston Martin’s shares are listed on the London Stock Exchange.
The possible problem lies in the fact that Wolff personally bought shares of the British luxury car manufacturer Aston Martin, while the company he has a business relationship with – Daimler, started investing in the manufacturer soon after, which increased the value of its stock by around 60%.
The issue is further complicated by Toto Wolff’s friendship with the part owner and executive chairman of Aston Martin – Lawrence Stroll, and the fact that a month after Wolff bought the shares, former Mercedes-AMG’s CEO Tobias Moers, who has had a 26-year-long career with Daimler, was appointed as the CEO of Aston Martin.
If you like SilverArrows.Net, consider supporting us by buying us a coffee!
So to make it simple, here is the timeline:
- In January of 2020 it was announced that Lawrence Stroll and his consortium bought a 16.7% stake in Aston Martin and took control of the company. A year later he rebranded his Formula 1 team Racing Point as the Aston Martin Formula 1 Team.
- In April of 2020 it was announced that Toto Wolff acquired a 4.77% stake in Aston Martin as a personal investment. The stake would later be diluted to 0.95%.
- In May of 2020 former Mercedes-AMG’s CEO Tobias Moers was appointed as CEO of Aston Martin.
- In October of 2020 it was announced that Mercedes-Benz AG will increase its stake in Aston Martin from 2.6% to a maximum of 20% by 2023. In addition they announced they will increase the level of technical cooperation between the two companies.
It is important to note that no official investigation has been launched yet and those are as it stands only suspicions by BaFin.
Le Journal de Montreal reached out to the Mercedes F1 Team to inquire if they are aware of any ongoing investigation.
“No. We are not aware of any such action,” replied Mercedes-Benz Motorsport Communications Director Bradley Lord.
“All the necessary disclosures were made to the British financial authorities at the appropriate time.”
Lord also commented on Wolff’s relationship with Stroll.
“Mr. Wolff and Mr. Stroll are friends and sometimes share travel arrangements to and from Grand Prix. This was the case in Melbourne in 2020.
“Toto invested in Aston Martin because he believes in the brand, the product, and its growth potential,” concluded Lord.
Earlier a spokesperson of Daimler said this of Wolff’s investment in Aston Martin.
“This is a financial investment. As such, we do not comment on any such internal proceedings,” said Jörg Howe.
“Mr. Wolff has been a trusted partner of Daimler AG through the joint ownership in the Mercedes Formula 1 team since 2013,” concluded Howe.
Aston Martin spokesperson Grace Barnie said she had no comments on the issue from Lawrence Stroll or the company.
This is not surprising since no official issue has been raised yet. For the moment this is only speculation on the part of Le Journal de Montreal, based on their contacts with BaFin.
If there are any official developments in this story, we will report it here on SilverArrows.Net.
UPDATE: The Financial Times reports that BaFin and the FCA have looked into suspicions and have found no evidence of any wrongdoing. Therefore they will not pursue any further action.
