REG - Aston Martin Lagonda - Aston Martin Lagonda and Mercedes-Benz AG

Aston Martin Lagonda Global HoldingsAnnouncement

26/06/2023 07:00

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RNS Number : 8151D  Aston Martin Lagonda Glob.Hldgs PLC  26 June 2023

26 June 2023

 

Aston Martin Lagonda Global Holdings plc

 

Aston Martin Lagonda and Mercedes-Benz AG announce amendment and restatement
of Strategic Co-operation Agreement

 

·      Aston Martin and Mercedes-Benz AG to continue long-term strategic
co-operation, supporting the delivery of current and future generation Aston
Martin vehicles

·      Amendment and restatement of the Strategic Co-operation Agreement
("SCA") will see the original agreement to issue additional Aston Martin
shares to Mercedes-Benz in exchange for access to further technology replaced
with a restated commitment to the existing strategic collaboration allowing
the parties to discuss future access to technology for cash

·      No further consideration shares, or related cash top up payments,
will be issued or paid to Mercedes-Benz under the SCA

·      Mercedes-Benz to remain a long-term strategic partner and c.9%
shareholder in Aston Martin and to retain current representation on the Aston
Martin Board of Directors

Aston Martin Lagonda Global Holdings plc ("Aston Martin", "Aston Martin
Lagonda" or the "Company") and Mercedes-Benz AG) ("MBAG" or "Mercedes") today
announce that they have agreed to amend and restate the Strategic Co-operation
Agreement ("SCA"), originally entered into on 27 October 2020.

As previously announced by the Company, the SCA provided the Company with
access to a wide range of MBAG's technology, in consideration for which Aston
Martin agreed to issue consideration shares in at least two tranches by no
later than July 2024. The second of these tranches currently remains unissued.
The amendment agreed between the parties today will see the agreement to issue
this second tranche of consideration shares replaced with a restated
commitment to the existing strategic collaboration between Aston Martin and
MBAG in connection with the potential future supply of MBAG technology to
Aston Martin, payable for in cash.

Mercedes-Benz AG will continue to provide Aston Martin with access to a range
of world-class technologies, including powertrain and electric/electronic
architectures for current and future generation Aston Martin vehicles,
including internal combustion engine, hybrid and electric vehicles.

Underscoring the continued long-term partnership between the Company and MBAG,
the Relationship Agreement entered into between them on 27 October 2020 will
remain in place, in accordance with which MBAG will retain representation on
the Aston Martin Board of Directors. MBAG likewise preserves its shareholding
in the Company, which on the date of this announcement represents
approximately 9.4% of the Company's issued share capital.

The Company also this morning separately announces its intention to form a
strategic supply agreement with Lucid Group, Inc. ("Lucid") to provide Aston
Martin with access to Lucid's industry-leading technology for Aston Martin's
battery electric vehicles. As part of the amendment and restatement of the
SCA, MBAG has waived any rights or obligations (including any termination
rights) under the SCA that may have otherwise arisen in connection with the
proposed partnership with Lucid.

Lawrence Stroll, Executive Chairman of Aston Martin, said: "I am delighted to
continue our long-term partnership with Mercedes-Benz and appreciate their
ongoing support of Aston Martin. This amendment provides clarity and will see
both companies continue our long-standing relationship, providing us with
access to Mercedes' world-class technologies as we bring our new range of
breathtaking products to market over the coming years."

Franz Reiner, Non-Executive Director and Mercedes-Benz AG Representative,
said: "As a long-term shareholder, Mercedes-Benz supports Aston Martin's
future development as an independent luxury carmaker. Today's revised
cooperation agreement is the best of both worlds: It ensures that Aston Martin
continues to have access to a wide range of Mercedes-Benz technologies, while
at the same time giving the iconic British carmaker the opportunity to explore
new opportunities which fit its specific needs."

 

Regulatory Disclosures

This announcement includes inside information as defined in Article 7 of
the UK Market Abuse Regulation No. 596/2014 as it forms part of domestic law
by virtue of the European Union (Withdrawal) Act 2018 and is being released on
behalf of the Company by Liz Miles, Company Secretary.

Enquiries

 Investors and Analysts
 Sherief Bakr    Director of Investor Relations                                        +44 (0)7789 177547

sherief.bakr@astonmartin.com

 Holly Grainger  Deputy Head, Investor Relations                                       +44 (0)7442 989551

holly.grainger@astonmartin.com

 Media
 Kevin Watters   Director of Communications                                            +44 (0)7764 386683

kevin.watters@astonmartin.com

 Paul Garbett    Head of Corporate and Brand Communications                            +44 (0)7501 380799

paul.garbett@astonmartin.com

 Edward Taylor   Head of Business and Finance Communications, Mercedes-Benz Group AG   +49 176 3094 1776

                                                                                       edward.taylor@mercedes-benz.com
 Teneo
 Harry Cameron                                                                         +44 (0)20 7353 4200

 

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