Aston Martin Lagonda announced on Monday its intention to sell its minority stake in the Aston Martin Aramco Formula One team as part of efforts to stabilise its struggling core business.
Simultaneously, the company’s largest shareholder, the Yew Tree Consortium, plans to increase its stake in the firm to 33 per cent, according to a statement released on Monday, March 31, 2025.
The move, led by Canadian billionaire Lawrence Stroll—whose son, Lance Stroll, drives for the F1 team—is expected to boost Aston Martin’s liquidity by more than £125 million ($162 million).
Despite the sale, Aston Martin reassured that its long-term Formula One sponsorship agreement would remain unchanged.
CEO Adrian Hallmark said the fresh investment would “accelerate our progress into being a sustainably profitable company.”
The announcement comes as Aston Martin grapples with widening losses, exacerbated by weak demand in China.
In response, the company recently revealed plans to cut around five per cent of its workforce.
Hallmark, who took over as CEO late last year from Amedeo Felisa, is the fourth person to hold the role in as many years, having previously led Bentley.
Under UK takeover regulations, increasing its stake beyond 30 per cent would typically require the Yew Tree Consortium to make an offer for the entire company. However, the group is seeking an exemption.
Investment expert Russ Mould of AJ Bell remarked that while such exemptions have been granted in the past, a full takeover might be a more effective solution, allowing Aston Martin to execute its turnaround strategy away from public market pressures.
He also questioned the company’s repeated fundraising efforts, suggesting they have yielded little progress, and described the sale of the F1 stake as a sign of desperation.
