Malaysia's DRB-Hicom and China's Zhejiang Geely ink Proton, Lotus deal

 

The Proton showroom in Shah Alam. DRB-Hicom and Zhejiang Geely have signed a definitive agreement on the latter's acquisition of 49.99 per cent of Malaysian carmaker Proton and 51 per cent of luxury sports car brand Lotus.
PHOTO: THE STAR/ ASIA NEWS NETWORK

  
DRB-Hicom Bhd and Zhejiang Geely Holdings Group signed on Friday (June 23) a definitive agreement on the latter's acquisition of 49.99 per cent of Malaysian carmaker Proton and 51 per cent of luxury sports car brand Lotus.

Malaysian Prime Minister Najib Razak said the signing of the agreement cements the new beginning of a strategic partnership between both companies.

''Following this strategic partnership, Proton will have the ability and resources to turn itself around and become an example of Malaysian success.

''Geely is a company with the right credentials and proven track record. I believe Geely has the ability and expertise to take Proton to new levels of success,'' said Mr Najib.

Among those present to witness the signing were Chinese Ambassador to Malaysia Huang Huikang, Minister of Finance II Johari Abdul Ghani, Second Minister of International Trade Ong Ka Chuan, Prime Minister's Special Envoy to China Ong Ka Ting,  Zhejiang Geely chairman Li Shufu,  Zhejiang Geely president An Conghui, and DRB-Hicom managing director Syed Faisal.

"The acquisition is expected to be completed in three months, after which Zhejiang Geely will form a core management team recruited from a pool of global candidates to ensure the smooth operation of Proton," both companies said in a joint statement.

Mr Li Shufu said: "As an iconic national brand, Proton epitomises the spirit of Malaysia. Our partnership with DRB-Hicom will enable Proton to become the industry leader in Malaysia and a top three brand in South-east Asia.

"We will also continue to expand Lotus' product portfolio and increase production to further enhance its brand. Furthermore, the deep regional knowledge we gain from Proton and Lotus through this transformative partnership, coupled with our technological expertise and leadership in innovation, opens the door for Zhejiang Geely to become a major player in the Asean market and will help us reach our sales target of three million units by 2020," he said.

Mr Syed Faisal said Zhejiang Geely - which also owns Sweden's Volvo Cars, London Taxi Company, LYNK & Co and the Geely Auto portfolio of car brands - is the right partner for Proton.

"With Zhejiang Geely making Proton their right hand-drive hub for the Asean region, Proton can now target the immense Asean passenger car market for both our existing models and Geely's models.

"Proton's status as Malaysia's national car is secure, and DRB-Hicom remains a majority shareholder. Proton will now focus their efforts with Zhejiang Geely on gaining domestic market share," he said.

Source: StraitsTimes