Luxury carmaker Aston Martin Lagonda has announced plans to sell its minority stake in the Aston Martin Aramco Formula One team as part of a broader effort to stabilize its finances.
The move, revealed in a statement on March 31, 2025, will boost the company’s liquidity by over £125 million ($162 million).
Simultaneously, the Yew Tree Consortium, led by Canadian billionaire Lawrence Stroll, plans to increase its stake in Aston Martin to 33%, strengthening its control over the struggling automaker.
Despite selling its stake in the Aston Martin F1 team, the company assured that its long-term sponsorship agreement with the team remains unchanged.
According to CEO Adrian Hallmark, the fresh capital injection will help the company accelerate its path to sustainable profitability.
Aston Martin Faces Financial Challenges
The announcement comes as Aston Martin grapples with growing losses and weak demand in China.
In response to financial struggles, the company recently announced job cuts affecting 5% of its workforce as part of its restructuring efforts.
Hallmark, who took over as CEO late last year, is already the fourth CEO in four years, following previous leaders Amedeo Felisa and Tobias Moers.
Under UK takeover regulations, any shareholder increasing their stake beyond 30% is usually required to make an offer for the entire company. However, the Yew Tree Consortium is currently seeking an exemption from this rule.
Financial expert Russ Mould of AJ Bell noted that while such exemptions have been granted before, a full takeover might be the best solution, allowing Aston Martin to execute its turnaround strategy away from public market pressures.
Mould also criticized the company’s repeated fundraising efforts, stating that they haven’t delivered significant improvements. He suggested that selling its F1 stake signals financial desperation rather than strategic planning.
