Aston Martin has announced a new partnership with Italian firm Investindustrial. Investindustrial has acquired a 37.5 percent interest in Aston Martin, beating Indian-based Mahindra Group for the shares. Will the newly integrated Italian influence the British brand, or do fans prefer their Astons shaken, not stirred?
It was battle of wallets over wits between Mahindra Group, a $15 billion industrial conglomerate based in Mumbai, India, and Italian-based Investindustrial.
Investindustrial was the underdog in the deal, with approximately $4 billion in assets under its belt. Mahindra Group boasts a much larger bank account, with around $15 billion at its disposal. Investindustrial did ultimately win, agreeing to pump $241 million into Aston Martin brand in exchange for the shares. A majority stake is still held by Kuwait’s Investment Dar.
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The economic downturn hit Aston Martin a bit hard, leaving the luxury carmaker with a punctured credit rating and ailing profits. Anything over a 40% stake claimed in Aston Martin would have resulted in a potentially complicated change of control covenant. This agreement will ensure an uninterrupted power flow while infusing much-needed revenue.
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“The main message is that today’s news is a transaction between partners with common interests and common views of the future of the company,” stated Matthew Clarke, an Aston Martin spokesman.
Production operations for Aston Martin will remain at the brand’s headquarters at Gaydon in Warwickshire. Stay tuned!
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