Mercedes-Benz will be the largest stakeholder of Aston Martin by 2023

Mercedes-Benz is going to buy the 20% stake of Aston Martin by 2023, making it the majority shareholders in the company. Aston Martin which is 107 years old company is going through a hard time since it floated 2 years ago and the company lost two-thirds of their value this year. The former CEO of Mercedes-AMG, Tobias Moers, is CEO of the company since last August.

At the moment Mercedes has 2.6 per cent stake in Aston martin and it will be multiple stages in which Mercedes share will be increased which is a part of the release of 250 million shares at the price of 50 pence each. The maximum value of the stock issued to Mercedes will be ($372.7 million.

There is already an agreement in place between the two companies since 2013 and the new deal will give Austin Martin more access to Merc technology, including hybrid and electric drive systems.

Aston’s chairman said that its another step forward in our long-term partnership and it will take our collaboration to another level as Merc will become the company`s largest shareholders.

The Mercedes will also be able to nominate one non-executive director to Aston Martin’s board. Aston announced on Tuesday that it suffered a core loss of 29 million pounds in the third quarter, compared to a profit of 43 million pounds last year. Revenue was slashed by half to 124 million pounds in the same period

Aston Martin is expecting annual expenses of 250 million pounds to 300 million pounds per year between 2021 and 2025. The company forecast for the production is about 10,000 units which will generate revenue of 2 billion pounds and adjusted core profit is expected to be 500 million pounds by financial years 2024 to 2025.