China carmaker Geely is reportedly taking a stake in Malaysia's iconic Proton stat : CNBC

Malaysia's DRB-Hicom, Proton's parent, and Zhejiang Geely Holding expect to sign the deal by the end of July, a statement from Geely said. Chinese automaker Geely will be taking a 49.9 percent stake in Malaysia's iconic, home-grown, but long-struggling carmaker Proton. The deal will include Zhejiang Geely Holding, parent of Geely Automobile and Volvo, acquiring a 51 percent stake in British sports-car brand Lotus from Proton, the Geely statement said. Geely, including its Volvo brand, ranked just 16th globally on World Car Group's ranking by sales. "Geely Holding is full of confidence for the future of Proton, we will fully respect the brands history and culture to restore Proton to its former glory," Daniel Donghui Li, Geely Holding's chief financial officer, said in the statement.




China's Geely said to buy stake in Malaysian carmaker Proton. agreed to sell a stake of almost 50 percent in its unprofitable carmaker Proton Holdings Bhd. PSA Group, which was competing with Geely for the Proton stake, declined to facebook/" target="_blank">comment. (Reuters)Malaysian conglomerate DRB-Hicom Bhd. When DRB-Hicom privatized the carmaker in 2012 after buying a 43 percent stake from state-owned investment firm Khazanah Nasional Bhd., the deal valued Proton at 2.8 billion ringgit ($645 million).

China's Geely takes 49.9 percent stake in Malaysia's national carmaker Proton

REUTERS/Kim Kyung-Hoon/File PhotoKUALA LUMPUR Chinese automaker Zhejiang Geely Holding Group on Wednesday said it would buy a 49.9 percent stake in Malaysia's national carmaker Proton from conglomerate DRB-HICOM (DRBM.KL), marking another major Chinese auto investment in Southeast Asia. "Japanese automakers already dominate Southeast Asia's auto market and they make the region a tough place to do business for newcomers. As well as an entry point into Southeast Asia, Proton gives Geely access to right-hand-drive (RHD) markets around the world, including Malaysia, Britain, India and Australia. Geely, parent company of Hong Kong-based Geely Automobile Holdings Ltd (0175.HK) and Sweden's Volvo Car Group, would also acquire 51 percent of Proton unit Lotus, the companies said. But sub-par cars, poor after-sales service and tough competition from foreign automakers dented profits - with its market share currently at around 15 percent.