Private equity fund Investindustrial is closing in on an agreement to buy an Aston Martin stake to ensure financing of the renowned sports-car maker.

According to two people familiar with the matter quoted by Bloomberg, London-based Investindustrial has trumped Indian automaker Mahindra & Mahindra to invest in Aston Martin. The unnamed sources said a final agreement has not yet been signed.

One of the people said the exact size of the stake transaction, which values the automaker at about 750 million pounds ($1.21 billion) including debt, has not yet been determined. The deal would provide Aston Martin with a much needed cash infusion to invest in automotive resources in order to compete with Bentley and Ferrari.

According to a report from The Times of India, Mahindra had pulled out of the bidding. Aston Martin is currently owned by Investment Dar, a Kuwait-based investment group that bought the British carmaker from Ford in 2007 for 503 million pounds.
For Investindustrial, the deal would mean returning to high-end vehicle manufacturing after selling Italian motorcycle maker Ducati to VW’s Audi this year for 860 million euros ($1.11 billion).

Although Mahindra’s original bid was higher, Investindustrial’s offer includes plans to use technology and car parts from AMG, the Mercedes-Benz unit that makes sports cars, two people familiar with the talks said last week.


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