Aston Martin at Risk of Takeover by Billionaire Stroll
Deal News (Rumour) | Mar 31, 2025 | EIN
Canadian billionaire Lawrence Stroll, through his Yew Tree Consortium, is poised to potentially take over Aston Martin by increasing his stake to 33% with the purchase of an additional 75 million shares at a 7% premium. This move risks triggering a mandatory buyout offer under the UK Takeover Code, which requires an offer to all remaining shareholders if any party exceeds 30% ownership. Aston Martin has been grappling with a sharp 45% decline in stock price attributed to worries over potential US tariffs on non-American carmakers. Despite these challenges, Stroll remains confident in Aston Martin's rebranding into a leading ultra-luxury automotive brand. Furthermore, the company announced plans to divest its minority stake in the Formula One team for 74 million, anticipating the sale despite a previous valuation of 50.9 million. Stroll's actions come ahead of the firm's quarterly results, with trading performance reportedly meeting forecasts, although a reduction in special deliveries is expected.
Sectors
- Automotive
- Financial Services
- Motorsport
Geography
- United Kingdom – Aston Martin is a British car manufacturer, and the takeover discussions involve UK market regulations.
- Canada – Lawrence Stroll, a Canadian businessman, is a central figure in the potential takeover of Aston Martin.
- United States – US tariffs on non-American carmakers impact Aston Martin's stock price and business strategy.
Industry
- Automotive – Aston Martin operates within the automotive industry, focusing on luxury high-performance vehicles.
- Financial Services – Lawrence Stroll's investment activities and potential takeover fall under the financial services sector.
- Motorsport – Aston Martin's involvement in Formula One ties the article to the motorsport industry.
Financials
- 52.5m – The amount Lawrence Stroll plans to increase his stake in Aston Martin.
- 75m shares – The number of shares Lawrence Stroll aims to purchase in Aston Martin.
- 7% – The premium at which Stroll's consortium intends to buy Aston Martin shares.
- 33% – The potential total ownership stake Stroll would have in Aston Martin after the new share purchase.
- 74m – The sale price for Aston Martin's minority stake in its Formula One team.
- 50.9m – The valuation of the Aston Martin F1 stake at the end of the previous year.
- 45% – The decline in Aston Martin's stock price over the last six months.
- 25% – The proposed US tariff on non-American car manufacturers.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Aston Martin | Target Company | Company | A British luxury car manufacturer facing potential takeover by Lawrence Stroll. |
| Yew Tree Consortium | Bidding Company | Company | The investment group through which Lawrence Stroll plans to increase his stake in Aston Martin. |
| Lawrence Stroll | Potential Buyer | Person | A Canadian billionaire and executive chairman of Aston Martin, looking to increase his stake. |
| UK Panel on Takeovers and Mergers | Regulatory Body | Government | The body that governs takeover regulations in the UK and would evaluate the waiver request. |
| Lance Stroll | F1 Driver | Person | Lawrence Stroll's son, currently driving for the Aston Martin F1 team. |