InvestIndustrial grabs 37.5% stake in Aston Martin
Dailybhaskar.com | Dec 07, 2012, 18:52PM IST
New Delhi: The race is finally over, and the winner is InvestIndustrial. As per latest reports, the Italian finance giant has managed to purchase 37.5% stake in the British luxury car brand, which also had the contention of Mahindra & Mahindra at one point of time. Though there are a lot of opinions about what made the deal go through, but some probing reveals that the real reason could be the dual advantage of fund infusion, and advanced technology from Mercedes, which InvestIndustrial will be bringing to the table, unlike Mahindra who focused more on the funding part. Even though the bid was higher, Mahindra lost out to buy the British luxury carmaker.
Typical to British diplomacy, the chairman of Aston Martin David Richards said, “Investindustrial’s new investment reflects and sustains the unique position of Aston Martin within the industry,” which perhaps makes it clear that Mahindra was never really in high contention for the stake in the British carmaking company. However, InvestIndustrial will be buying the stake for $246 million(Rs 1,340 crores), which will also allow them strategic advantages. Most importantly, it will give them a chance to compete stronger economically with brands like BMW, Ferrari, and Bentley. With most luxury brands looking at zero-emissions with incresing sincerity , perhaps technology would revive the British luxury car brand to a stage it belonged.