The billionaire and Racing Point owner Lawrence stroll takes a major share in Aston Martin securing a sixteen point seven percent stake in the company, which will lead the Racing Point becoming the Aston Martin F1 team.
Following rumours that have been circulating since late last year, it’s been finally announced that a consortium led by Lawrence Stroll has secured a 16.7 percent stake in Aston Martin for 182 million pounds. the deal also includes a 318 million pound cash injection, as a part of the overall package for a grand total of 500 million pounds being thrown around.
“Racing Point F1 will become the Aston Martin F1 works team. commencing from 2021 under a 10-year deal, the F1 deal will also include Aston Martin sponsorship for the first five years with extension options thereafter, this also means that Red Bull and Aston Martin’s current partnership will cease at the end of 2020, the co-branded Red Bull Aston Martin hyper car the Valkyrie will still go ahead with release aimed for later this year, Lawrence Stroll who led the billionaire consortium will become the new Aston Martin chairman, Aston Martin CEO Annie Palmer will remain in his role.”
Lawrence Stroll beat out a bid from Chinese company GEELY, who owns Lotus and Volvo and have a 9.7 percent stake in Daimler Mercedes parent company. the 500 million pound investment will include a 55.5 million pound short-term injection of cash for things to get going within the company.
“Aston Martin Lagonda has entered into a legally binding termsheet under which the Racing Point F1 team will become the Aston Martin F1 works team, with effect from the 2021 season. this agreement is for a 10-year initial term and Aston Martin Lagonda will receive an economic interest in the team”
Aston Martin CEO Andy Palmer who’s worked closely with a Red Bull in F1 over the previous few years, released this statement “Mr. stroll brings strong and proven expertise in both automotive and luxury brands more widely, which we believe will be of significant benefit to Aston Martin Lagonda. we have also announced plans to leverage a new motorsport collaboration with Racing Point to enhance the execution of the plan. I would like to thank Red Bull Racing who we will continue to sponsor this year for their partnership and supporting us being able to say this today”
Stroll also released the statement explaining his feelings on the deal “on completion of the £500m of fundraising I look forward to working with the board and management team in Aston Martin Lagonda to review and improve each aspect of the company’s operations and marketing to continue to invest in the development of new models and technologies and to start to rebalance production to prioritise demand over supply”
And Red Bull Racing released the statement clarifying their agreement terms and thanking Aston Martin for their partnership. “following the Aston Martin Lagonda announcement earlier today, the team can confirm that the manufacturer will remain title partner until the end of the 2020 season, but this contract will not be extended past the end of the current term, we thank Aston Martin for the support over the past four years in which time we have achieved 12 wins 50 podiums and six pole positions together. we wish Aston Martin’s employees and shareholders all the best for the future and our focus remains on working together through the 2020 season and ending our partnership on a high”
Both lance Stroll and Sergio Perez are expected to remain as a part of the team, and going forward this deal along with everything else is all pointing towards stability and strength to the team, at the very least it seems to drive the nail in further that the team is investing into a long future in Formula 1, with the intention of not just making up a place on the grid, but instead Lawrence seems genuinely interested in pushing the team forward and towards the top.