Saudi Arabia’s sovereign wealth fund is about to become a major shareholder in Aston Martin.
The kingdom’s Public Investment Fund will raise $773.15 million to buy a 16.7% stake in the British luxury car company. The transaction will make the fund the second-largest shareholder in Aston Martin, which is suffering from high debt and a drop in its stock’s value, Reuters reported.
Why it matters: The move represents the latest effort by the Public Investment Fund to invest in new non-oil sectors as Saudi Arabia seeks to diversify its economy. The fund’s LIV Golf league began in June and continues to attract more top golfers. In January, the Public Investment Fund launched a video game competition group.
Saudi Arabia already has several investments in motorsports. The state-owned oil company Aramco sponsors a Formula One racing team with Aston Martin. The Gulf state also hosts the Saudi Arabian Grand Prix race.
The Aston Martin investment also demonstrates continued Saudi inroads into the British economy. The Public Investment Fund purchased the Newcastle United association soccer team last year. LIV Golf also has some tournaments in the United Kingdom.
Know more: The United Kingdom began trade talks with Saudi Arabia, the United Arab Emirates and other members of the Gulf Cooperation council in June.