Geely-owned Lotus Technology has exercised its put option to acquire a 51% equity interest in Lotus Advance Technologies (Lotus UK).
This strategic move follows the put option agreement signed by Geely and Lotus Technology in January 2023.
The acquisition consolidates the manufacturing of Lotus’ sportscars and hypercars, as well as Lotus Engineering’s consultancy services, under the unified Lotus brand.
The transaction is expected to be completed by 2025, pending regulatory approvals.
It involves a non-cash agreement based on a pre-agreed pricing method, allowing Lotus Technology to gain control over Lotus UK and consolidate its financial results.
Additionally, this acquisition aligns with the business combination between Lotus Technology and L Catterton Asia Acquisition, a special purpose acquisition company.
The put option agreement, which includes both Geely and Etika, grants them the right to sell their equity interest in Lotus UK to Lotus Technology, contingent on Lotus UK and its subsidiaries selling over 5,000 vehicles in 2024.
Lotus Technology chief executive officer Qingfeng Feng said: “This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand, which will strengthen brand equity and enhance our operational flexibility and internal synergies. We are confident that the transaction will create substantial long-term value for our shareholders.”
Also, this month, Lotus Robotics, the intelligent driving arm of Lotus Technology, has signed a memorandum of understanding with HERE Technologies.
This collaboration aims to develop an advanced Highway Navigation Pilot solution by producing an L2+ advanced driver assistance systems (ADAS) solution, powered by HERE HD Live Map, with plans for homologation in Europe in 2025.
“Lotus Technology to acquire majority stake in Lotus UK” was originally created and published by Just Auto, a GlobalData owned brand.
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