Saudi Arabia has purchased a 20.5% stake in Aston Martin
This page is translated from the original post "L’Arabie Saoudite a acheté 20,5% d’Aston Martin" in French.
- 11/11/2023 9:41
Saudi Arabia’s sovereign wealth fund has made a new share purchase to increase its stake in Aston Martin.
Gradually, but surely, the takeover is underway. Following disappointing financial results, despite outstanding performances in Formula 1, Aston Martin needs to raise capital. To do so, the British manufacturer must either ask its shareholders to contribute money or have some sell their shares to others who are willing to inject (oil) dollars.
This is what happened in autumn 2023, with the company’s announcement of increased investment by the Saudi Arabia’s sovereign wealth fund. The Saudi state already owned 17.9% of Aston Martin and has purchased an additional 2.6%, becoming the second-largest shareholder of the company.
Lawrence Stroll remains the top shareholder by value, but if a shareholder agreement were to oppose him, he’d quickly be in danger. And when sitting at the table with a sovereign fund worth billions, it will be difficult for the Canadian businessman to maintain his position if the brand’s poor results continue. This includes Formula 1, where his son Lance is one of the drivers alongside the spectacular Fernando Alonso. Firing the boss’s son would send a strong internal message regarding Saudi Arabia’s takeover. Wait and see…
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