Chinese auto giant Geely on Wednesday stepped up its global expansion drive with a 49.9 percent stake in Malaysia's troubled Proton as well as a 51 percent share in British sports car brand Lotus. The deal would allow the automaker to "strengthen our global footprint and develop a beachhead in Southeast Asia," a region of more than 650 million people, Geely Holding executive vice president Daniel Donghui Li said.
Proton's parent DRB-HICOM said the arrangement would enable Proton, Southeast Asia's first auto brand, to tap Geely's technology and access existing markets of the Chinese manufacturer. Geely Holding already owns Sweden-based Volvo Car Corporation, which has made a remarkable comeback since it was sold by the Ford Motor Company in 2010. Geely also bought The London Taxi Company in 2013.
The financial terms of the Proton deal were not disclosed at a joint news conference in Kuala Lumpur. However, DRB-HICOM group managing director Syed Faisal Albar said Proton's 100 percent stake in Lotus was sold for 100 million pounds ($130 million). Geely took 51 percent of Lotus while a Malaysian firm, Etika Automotive Sdn Bhd, bought 49 percent.
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