Zhejiang Geely Holding Group (Geely Holding), China’s leading privately-owned automotive group, has reached a binding heads of agreement with DRB-HICOM Bhd (DRB) of Malaysia regarding the future of PROTON Holdings Bhd (PROTON) and Lotus Advance Technologies Sdn Bhd (Lotus).
Subject to regulatory approval and the signing of the definitive agreement, this heads of agreement allows Geely Holding to acquire 49.9 percent of the shares of PROTON from DRB and become its exclusive strategic partner. Geely Holding will also acquire a majority share of 51 percent of Lotus from PROTON. Both parties expect to sign the definitive agreement by mid-July 2017.
This agreement lays the foundation for a wider framework for both Geely Holding and PROTON and Lotus to explore joint synergies in areas such as research and development, manufacturing and market presence. Geely Holding is committed to supporting the transformation of PROTON and Lotus with the expertise and resources within the wider Geely Group. Both parties aim to build PROTON into the most competitive brand in Malaysia and a leading brand in South East Asia.
Mr. Daniel Donghui Li, Executive Vice President and Chief Financial Officer of Geely Holding Group, said: “With Proton and Lotus joining the Geely Group portfolio of brands we strengthen our global footprint and develop a beachhead in South East Asia. Geely Holding is full of confidence for the future of Proton. We will fully respect the brand’s history and culture to restore Proton to its former glory with the support of Geely’s innovative technology and management resources. Reflecting our experience accumulated through Volvo Car’s revitalization, we also aim to unleash the full potential of Lotus Cars and bring it into a new phase of development by expanding and accelerating the rolling out of new products and technologies.”
DRB-HICOM Group Managing Director, Dato’ Sri Syed Faisal Albar, said “Our intention was always to ensure the revitalization of the PROTON nameplate. It was Malaysia’s first national car brand and has more than 30 years of history. This deal will be the catalyst to elevate a brand that Malaysians resonate with.”
Geely Holding Group has built a strong record in global acquisitions; the group acquired Volvo Cars from Ford Motor Company in 2010 and acquired the London Taxi Company in 2013. Both Volvo Cars and London Taxi Company have benefited from joining the Geely Holding portfolio of brands due to strong internal synergies, robust and globally focused management, and access to innovative technologies.
