View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 3, 2017

Geely reconsiders Proton bid

Shares of Malaysia’s DRB-Hicom fell sharply in late trading on Friday as investors reacted to news that Chinese carmaker Zhejiang Geely Holding Group is re-evaluating its recent bid for Proton Holdings.

Shares of Malaysia's DRB-Hicom fell sharply in late trading on Friday as investors reacted to news that Chinese carmaker Zhejiang Geely Holding Group is re-evaluating its recent bid for Proton Holdings .

Hangzhou-based Geely Holdings, along with France's PSA Peugeot Citroen, are understood to be the leading bidders for a controlling stake in Proton Holdings and its British sportscar manufacturer Lotus Cars.

Reports have surfaced that the Chinese billionaire owner of Geely, Li Shufu, is increasingly unhappy with what he calls the continual changes in DRB-Hicom negotiating stance.

In an interview in Beijing on Friday, Li Shufu told local reporters that DRB-Hicom "keep changing their minds", from one day to the next, adding "they haven't decided what they want".

DRB-Hicom badly needs a strategic partner for its loss-making Proton subsidiary which it acquired from the Malaysian government in 2012.

Proton's global sales are estimated to have fallen below 80,000 units last year, including 73,000 sales in its home market – far too small to survive as an independent vehicle manufacturer without significant government protection. 

Topics in this article: , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto