Geely (officially Zhejiang Geely Holding Group) has reportedly announced to acquire a controlling 49.9 percent stake in Malaysian carmaker Proton Holdings, from its parent the DRB-HICOM.
Geely will also acquire full stake in Lotus Cars, a British sports car marque which is currently owned by Proton. It is reported that DRB-Hicom is still negotiating on the transaction price for the stake in Proton.
Proton was founded in 1983 by Mahathir Mohamad, the former Prime Minister of Malaysia. The company had acquired Lotus Cars in 1996 from Italian entrepreneur Romano Artioli. Last year, the Malaysian government gave 1.5bn ringgit ($362m) financial aid to the troubled Proton, on a condition to find a foreign partner soon.
Geely, which owns Volvo Cars, Lynk & Co and The London Taxi, is expected to give both Lotus and Proton a better future.