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Geely takes 49.9% stake in Malaysian car maker Proton

Wednesday, May 24, 2017 - 14:04

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Geely Automobile said on Wednesday it has no plan to buy Fiat Chrysler, dismissing media speculation the Chinese company was interested in the Italian car maker.

[KUALA LUMPUR] Malaysian conglomerate DRB-Hicom will sell a 49.9 per cent stake in struggling car maker Proton to Chinese automaker Zhejiang Geely Holding Group, according to a company statement seen by Reuters.

Malaysia's Second Finance Minister Johari Abdul Ghani is expected to make an official announcement on the deal shortly.

The statement, which gave no value for the deal, said an agreement with Geely was expected to be signed in July.

Geely is the parent company of Hong Kong-based Geely Automobile Holdings Ltd and Sweden's Volvo Car Group. Malaysian manufacturer Proton also owns British sports car maker Lotus Cars.

Other companies that have expressed interest in Proton include Peugeot maker PSA, Japan's Suzuki Motor Corp and French car maker Renault SA.

DRB-Hicom asked for its shares to be suspended on Tuesday pending a material announcement.

REUTERS

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