Deals
Aston Martin Soars After Securing Mercedes’s Help Out of Crisis
- British carmaker raising $1.7 billion, mostly to repay debt
- Daimler to give company access to hybrid, electric powertrains
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Months after catching a lifeline from its billionaire owner, Aston Martin Lagonda Global Holdings Plc is securing more sorely needed funds and forging closer ties with Daimler AG to survive tumultuous times for the auto industry.
The British carmaker jumped as much as 16% in early London trading after saying it would raise about 1.3 billion pounds ($1.7 billion) through bond and stock offerings, most of which will be used to refinance existing debt. Daimler’s Mercedes-Benz also will help Aston Martin bring hybrid and electric vehicles to market, and in return will become a major shareholder without spending cash. Daimler fell as much as 5% in Frankfurt.