After buying Volvo, Geely is interested in purchasing Aston Martin too, starting a competition with Toyota.
Ford purchased Aston Martin in 1987 and then sold it to Investment Dar Inc, a company located in Kuwait, for $925 million in 2007. Now Investment Dar plans to reorganize its debt by selling 64% share in Aston Martin for $800 million, a deal which caught the attention of Geely and Toyota.
At the end of November the European private-equity fund based company, Investindustrial, offered around $401 million, but Mahindra & Mahindra came with a higher bid. Later Mahindra pulled out of the race due to Aston Martin’s troubled financial situation and maybe also because Investment Dar’s court-endorsed rehabilitation process.
With Mahindra out, two other companies showed their interest in Aston Martin’s purchase: Geely and Toyota. According to sources Toyota has had several meetings with Aston Martin over the past few weeks. But Geely plans to use the same plan it applied when it purchased Volvo, and that is to gain support of the local governments.
Geely offered $300 million to purchase Volvo and the rest of the money came from cities such as Daqing, Shanghai and Daqing, with the total investment reaching almost $2 billion. The condition is that Volvo would reinvest in their locales with new plants.