(GMM) The collaboration between Mercedes and Aston Martin is being expanded.
For months, there has been speculation that Mercedes’ F1 team boss Toto Wolff, who is already an Aston Martin shareholder, is getting fascinatingly close to Racing Point owner Lawrence Stroll.
Stroll plans to rebrand the Silverstone based team as Aston Martin for 2021.
So it is highly notable that Mercedes-Benz has agreed a deal to supply technology to Aston Martin in exchange for up to 20 percent of the Stroll-owned carmaker.
Currently, Mercedes’ stake in Aston Martin is 2.6 percent.
“With this new expanded partnership we will be able to provide Aston Martin with access to new cutting-edge technologies and components,” said Wolf-Dieter Kurz, Mercedes’ product strategy chief.
The deal will not include the exchange of cash.
The 107-year-old firm hired Tobias Moers, former CEO of Mercedes-AMG, as its new boss from August.
Aston said the increase in Mercedes-Benz’s stake, from 2.6% currently, would take place in several stages as part of a wider issue of 250 million shares at 50 pence each.
The stock issued to the German group will have a maximum value of 286 million pounds ($372.7 million), it said.
The deal will see an existing supply agreement between the two firms, in place since 2013, expanded to give Aston Martin access to key Mercedes‘ technology, including hybrid and electric drive systems.
“We take another major step forward as our long-term partnership with Mercedes-Benz AG moves to another level, with them becoming one of the company’s largest shareholders,” said Aston‘s chairman and biggest shareholder Lawrence Stroll.
The German firm will get the right to nominate one non-executive director to Aston Martin’s board after its first shareholding increase, the London-listed firm said.