Lawrence Stroll sells Aston Martin stake to Geely

Chinese automaker Geely bought 42 million shares of British luxury car maker Aston Martin from Lawrence Stroll, bringing its stake in the company to 17%.

The deal brought Aston Martin 95 million pounds, which is planned to be directed to the further development of the company. Shares of Aston Martin surged 22% on the news of the deal Thursday.

The Chinese company has become the third largest shareholder of Aston Martin after Lawrence Stroll and the state investment fund of Saudi Arabia. In terms of the number of shares it owns, Geely has already outstripped Mercedes-Benz, an important technology partner of Aston Martin.

Under an agreement between Aston Martin and Geely, the Chinese company will receive one seat on the board of directors and will not increase its share above 22% until August 2024.

For Lawrence Stroll, cooperation with Geely will expand its presence in the Chinese market and open flagship car dealerships in Shanghai and Beijing. Geely hopes to “create synergy” Aston Martin with its brands, which include Volvo, Polestar and Lotus.

“Geely offers us a deep understanding of the Chinese market, a key strategic growth market, as well as the opportunity to gain access to their technologies and components,” Lawrence Stroll commented on the deal.