<article>Chinese car maker <a style="color: #000080;" href="https://www.dealstreetasia.com/stories/chinas-geely-group-to-acquire-30-stake-in-denmarks-saxo-bank-72211/" target="_blank" rel="noopener noreferrer">Geely Holding</a> will acquire 49.9 per cent in Malaysian national auto company<a style="color: #000080;" href="https://www.dealstreetasia.com/stories/my-drb-hicom-doing-a-detailed-evaluation-of-bids-for-foreign-partner-in-proton-68854/" target="_blank" rel="noopener noreferrer"> Proton Holdings Bhd</a> from <a style="color: #000080;" href="https://www.dealstreetasia.com/stories/24615-24615/" target="_blank" rel="noopener noreferrer">DRB Hicom Bhd</a>, a deal done to turnaround the ailing local car company by bringing in a foreign partner.</article>

Chinese car maker <a style="color: #000080;" href="https://www.dealstreetasia.com/stories/chinas-geely-group-to-acquire-30-stake-in-denmarks-saxo-bank-72211/" target="_blank" rel="noopener noreferrer">Geely Holding</a> will acquire 49.9 per cent in Malaysian national auto company<a style="color: #000080;" href="https://www.dealstreetasia.com/stories/my-drb-hicom-doing-a-detailed-evaluation-of-bids-for-foreign-partner-in-proton-68854/" target="_blank" rel="noopener noreferrer"> Proton Holdings Bhd</a> from <a style="color: #000080;" href="https://www.dealstreetasia.com/stories/24615-24615/" target="_blank" rel="noopener noreferrer">DRB Hicom Bhd</a>, a deal done to turnaround the ailing local car company by bringing in a foreign partner.
DRB Hicom-the 100 percent owner of Proton currently reached an agreement with Zhejiang Geely Holding Group Co, Ltd (Geely Holding) for the Chinese car group to acquire the equity stake on Wednesday in the presence of Minister of Finance II Datuk Seri Johari Abdul Ghani.
The deal will also see PROTON sell its entire equity in British car maker Lotus to Geely Holding, which will see the group exit the sports car segment. Geely is taking a 51 per cent stake in Lotus and Etika Automotif Sdn Bhd the other 49 per cent.
Founded by former Malaysian Prime Minister <a style="color: #000080;" href="https://www.dealstreetasia.com/stories/worlds-top-banks-in-u-s-government-cross-hairs-over-dealings-with-1mdb-36087/" target="_blank" rel="noopener noreferrer">Mahathir Mohamad</a>, Proton had to seek government aid over $338 million last year and the government had asked the company to make a plan to turnaround the car maker that has seen its quality flounder over the years. The current owner DRB Hicom owned by Malaysian business tycoon Syed Mokhtar had acquired  Proton in 2012 but privatization did not help much.
The bidding that started last year had other foreign car makers in the race including European car maker Groupe PSA that owns Citroen, Peugeot, and DS brands, its competing company Renault and Japan’s Suzuki Motor.
The deal will enable PROTON to tap into Geely Holding’s vast range of platforms and power-trains, and will also enable PROTON to have access to existing markets of the Chinese car maker, as well as right-hand drive markets in south-east Asia, DRB Hicom said.
Geely Holding owns Hong Kong-based Geely Automobile and Sweden&#8217;s Volvo. It also owns The London Taxi Company and is one of the leading passenger vehicle car makers in China.
Post-sale of the stake to Geely, PROTON brand will remain present and will grow significantly with the new foreign strategic partner on board.
“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,” said DRB-HICOM Group Managing Director Syed Faisal Albar.
DRB-HICOM Berhad is one of Malaysia’s leading conglomerates with core businesses in the Automotive, Services &amp; Education, as well as Property sectors. With more than 90 active companies in its stable, in the automotive sector, DRB-HICOM is involved in the manufacturing, assembly and distribution of passenger and commercial vehicles, including the national motorcycle.
DRB Hicom reported a core net loss of MYR339 million in the nine months ended Dec 31, 2016 largely due to losses in the auto division. It was always understood that a Foreign Strategic Partner will enable Proton to have access new technologies and help it expand footprint beyond Malaysia.
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Chinese carmaker Geely to acquire 50% in Malaysia’s Proton

Chinese carmaker Geely to acquire 50% in Malaysia’s Proton

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Chinese carmaker Geely to acquire 50% in Malaysia’s Proton

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