China’s Zheijang Geely Holding Group company is set to acquire 49.9 percent equity in Proton Holdings Berhad.
Second Finance Minister Johari Abdul Ghani announced this, confirming earlier reports that Geely and Proton would soon enter into a partnership.
According to Bernama, Johari also said Proton would sell its entire equity in British carmaker Lotus to Geely.
This, he said, signals an exit for Proton from the sports car segment.
In quoting sources, Reuters yesterday reported that Chinese automaker Geely has agreed to buy Proton from DRB-Hicom, beating out rival bidder PSA Group.
The Zheijang Geely Holding Group controls Geely Automobile which is based in Hong Kong, as Sweden’s Volvo Car Group.
Last month, the Finance Ministry said in Parliament that collaboration with a foreign strategic partner would increase Proton’s capabilities in producing various types of vehicles with the latest technology and at competitive prices.
With the increase in production of cars and local components, the partnership would result in a more viable business model for Proton, its suppliers and car dealers in Malaysia, the ministry said, as reported by Bernama on April 3.