Mercedes Benz is reported to increase its stake in Aston Martin to maximum 20 percent over the next three years from the current 2.6 percent in exchange for supplying technology including hybrid and electric drives to the iconic British brand.

New shares will be issued via several tranches with the first one valued at GBP 140 million. This will raise its equity interest in Aston Martin to 11.8 percent.

Mercedes Benz says however it does not intend to raise its stake beyond the agreed 20 percent maximum envisaged in 2023.

Aston Martin suffered an operating loss of £229 million ($297 million) in the first nine months of the year. The stock has lost two-thirds of its value so far in 2020.

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