Zhejiang Geely Holding Group Co. Ltd. is in talks with Aston Martin Lagonda Global Holdings PLC for a potential investment in the British luxury carmaker, the Financial Times reported Jan. 10, citing people familiar with the matter.
The Chinese automaker, which also owns Volvo Cars, is conducting due diligence, the report said, adding that the talks might lead to a technology partnership rather than a full investment.
Geely owns a 10% stake in Mercedes-Benz owner Daimler AG, which reportedly sells some technology and engines to Aston Martin.
Aston Martin is already in talks with potential investors to raise funds. Shares of Aston Martin have been on a downward slide after the company's IPO in October 2018 at £19 per share. On Jan. 7, Aston Martin issued its second profit warning for fiscal 2019.
Additionally, Canadian billionaire Lawrence Stroll is close to investing about £200 million in Aston Martin, the Financial Times report added. The investment would reportedly give Stroll a 19.9% stake in the company.
"We remain in discussion with potential strategic investors in relation to building longer term relationships which may or may not involve an equity investment," Aston Martin said in an emailed statement to S&P Global Market Intelligence.
Geely did not immediately respond to the request for comment.
Aston Martin shares jumped 15.32% on Jan. 10 to close at 469.70 pence.