Lawrence Stroll, co-owner of the Racing Point Formula 1 team and father of driver Lance Stroll, is closing on a deal to acquire a major stake in the British luxury automobile manufacturer Aston Marton, according to reports.
Aston Martin has seen its shares dive in recent months following uncertainty over Brexit and falling demand for its products. Its shares are trading at 452p, which is much lower than the 1700p they opened at when listed in October 2018.
That has seen the value of the company drop significantly to just over £1 billion, making it ripe for a takeover.
Two parties were believed to be interested in taking a major stake in Aston Martin, but a report by Bloomberg suggests China’s Zhejiang Geely Holding Group Co. – which owns Volvo and Lotus – has backed out of the deal, leaving Stroll as the sole interested party.
It’s believed the Canadian billionaire could invest £200 million, though Aston Martin requires a cash injection of £400m to secure its future according to Jefferies Financial Group Inc.
Stroll hasn’t commented on the reports, but it’s believed he would consider rebranding the Racing Point F1 Team under the Aston Martin banner if the deal goes ahead.
It’s not known how such a deal would impact Red Bull, which counts Aston Martin as its title sponsor with the two companies sharing a technical partnership.