China's Geely buys stake in Aston Martin as luxury brand prepares to electrify
Geely is already invested in Volvo, Polestar and Mercedes-Benz
FOX Business Flash top headlines for September 30
Check out what's clicking on FoxBusiness.com
Chinese automaker Geely is expanding its portfolio with a major investment in Aston Martin Lagonda.
The company is taking a 7.6% stake in the publicly traded luxury automaker, which said it had raised $730 million in the latest funding round that included Saudi Arabia's Public Investment Fund.
Along with its namesake brand, Geely also controls Lotus, Volvo, Polestar and several other makes.
The investment comes just two months after a previous offer was rejected by Aston Martin Lagonda.
SEAN CONNERY'S OWN ASTON MARTIN DB5 SOLD FOR $2,425,000
The Aston Martin Valhalla is an $800,000 plug-in hybrid supercar. (Darren Staples/Bloomberg via Getty Images / Getty Images)
"We look forward to exploring potential opportunities to engage and collaborate with Aston Martin as it continues to execute its strategy to achieve long-term, sustainable growth and increased profitability," Geely CEO Daniel Donghui Li said in a release announcing the share purchase.
Aston Martin fields a team in the Formula One racing series with Mercedes-Benz power. (ROSLAN RAHMAN/AFP via Getty Images)
Aston Martin Lagonda's top shareholder is its executive chairman, Lawrence Stroll, while Mercedes-Benz also owns a significant stake and supplies engines for the brand's road and Formula One racing cars.
ELECTRIC CAR COMPANY REVEALS WHY PEOPLE REALLY BUY ELECTRIC CARS
Geely, in turn, holds over 9% of Mercedes-Benz's shares.
Geely is one of the largest China-based automakers. (VCG/VCG via Getty Images / Getty Images)
Aston Martin Lagonda has been aggressively raising capital this year in an effort to pay down debt.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The company has also announced that its first fully electric model will be launched in 2025 and that by 2026 its entire lineup will offer electrified options.