Geely to Bid for Malaysian Carmaker Proton?

Media reports say China’s Zhejiang Geely Holding Group Co. is a final bidder seeking to form a strategic partnership with Malaysia’s struggling Proton Holdings Bhd car company.

Geely’s plan calls for a controlling equity stake in the company, according to the Financial Times. It says Geely’s only rival bidder is PSA after Renault dropped out. Geely also owns Sweden’s Volvo Cars and England’s Group Lotus.

Proton, which commanded 70% of the Malaysian car market 30 years ago, has seen its market share shrink to 15% as higher-quality foreign brands poured in. Last year the government gave Proton a 1.5 billion-ringgit ($337 million) bailout loan but ordered the company to launch a turnaround plan and find a foreign partner by this summer.

DRB-Hicom Bld acquired Proton in 2012. Last September the conglomerate said it was evaluating overtures from five unidentified companies. DRB-Hicom added that it would consider an equity sale, depending on what the partner offered in return.

Proton’s earlier attempts to find a partner have foundered over who would control the enterprise.