Rumour: Mercedes-Benz contemplating Aston Martin buyout

If media reports are anything to go by, German auto major, Mercedes-Benz could be contemplating a complete buyout of Aston Martin. While Dieter Zetsche, the Chairman of Mercedes did what he could to play down the rumour, he did not deny a possibility of the development.

Aston Martin and Mercedes-Benz inked a deal in 2013, which stated that Mercedes-AMG will develop V8 engines for the British manufacturer's next generation of luxury GTs. In return Mercedes would acquire 5% non-voting shares in Aston Martin.

Aston Martin was sold by Ford in 2007 and has struggled ever since as it did not have the backing of any major player. The deal with Mercedes will help the company immensely as it would gain a major engine supplier and electronic and electrical architectures developed by the German company. A complete takeover by Mercedes will help Aston Martin expand its business as it could access markets that its parent company has presence in. It would also help the British company expand its model range.

Mercedes has made it clear that it will be interested in supporting Aston Martin further. Zetsche declared, "This is a fantastic brand and we are willing to support its further development."

However, a takeover might not be an easy process. Investindustrial, which owns a 37.5% stake in the company, will have a say in the proceedings. Investindustrial acquired this stake in Aston Martin last year for GBP 150 million.

Source: Autocar