China's Geely in talks to take stake in Britain's Aston Martin: FT, source

(Reuters) – China’s Geely Automobile Holding (HK:) is in talks with Aston Martin (L:) management and investors about taking a stake in the iconic British luxury carmaker, according to a source familiar with the discussions and the Financial Times on Friday.

Geely is conducting due diligence as it considers taking a stake in the 107-year-old UK firm, the FT said citing four people familiar with the discussions.

The talks come almost a month after Aston Martin confirmed it was in early-stage talks with potential investors as it launched a review of its funding.

Earlier this week, Aston Martin warned its 2019 profits would almost halve due to weak European markets.

Geely sees potential synergies on technologies and vehicle platforms between Aston Martin and its own Lotus brand, the source familiar with the discussions told Reuters.

A spokesman for Aston declined to comment on whether the company is in talks with Geely, and reiterated a statement from Tuesday.

“We also remain in discussions with potential strategic investors, which may or may not involve an equity investment into the company,” he said.

A spokesman for Geely Europe declined to comment.

Daimler which owns a 5% stake in Aston Martin, and supplies the carmaker with Mercedes-AMG engines, supports efforts by the British carmaker to secure its long-term future, the source said.

Daimler declined to comment.

Geely’s chairman Li Shufu, owns a 9.69% stake in Mercedes-Benz parent Daimler. Geely and Daimler run the Smart city car brand as a joint venture out of China.

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