Daimler said it will receive up to a 5 percent stake in luxury sports carmaker Aston Martin in exchange for supplying engines and electronic components to the 100-year-old British firm.
Aston Martin will team up with the German car maker's high-performance Mercedes-AMG GmbH division to develop a new generation of bespoke V8 engines for its sports cars.
The deal will help Aston Martin, the only global luxury carmaker not attached to a larger manufacturer, spread the cost of developing new fuel-efficient vehicles.
Daimler will receive non-voting shares in Aston Martin, owned by Kuwaiti and private equity investors, in several steps as the technical partnership progresses, the companies said on Thursday. They began negotiating the deal in July.
The two car makers also plan to cooperate on the supply of electronic and electric components.
Daimler will get observer status on the Aston Martin Holdings board as part of the deal.
Existing Aston Martin shareholders include Italian private equity fund Investindustrial, Kuwait-based Adeem Investment and Prime Wagon.
Source: REUTERS
