Geely Confirms Deal to Buy Stake in Malaysia’s Proton

China’s Zhejiang Geely Holding Group Co. confirms reports that it will acquire 49.9% of struggling Malaysian carmaker Proton Holdings Bhd. The companies say a final purchase price is still being negotiated.

Geely, which owns Volvo Car Corp., also will spend £51 million ($66 million) to buy 51% of iconic British sports car company Group Lotus from Proton.

The Malaysian carmaker, which is owned by conglomerate DRB-Hicom Bhd, will retain a 50.1% stake in Proton. The remaining 49% of Lotus is being acquired by Etika Automotive, a company controlled by DRB-Hicom founder Syed Mokhtar Al-Bukhary.

Geely says it aims to revive the Lotus and Proton brands. It promises to support both in such areas as research, product development, manufacturing and marketing. Analysts note that the deal broadens Geely’s global presence and gives it ready-made access to markets in southeast Asia.

Last year the Malaysian government loaned Proton 1.5 billion ringgits ($337 million) to pay suppliers but ordered the company to find a foreign partner by this summer. At one point Proton had 15 potential suitors.