Lotus Technology, a subsidiary of Geely, has recently exercised its put option to acquire a 51% equity interest in Lotus Advance Technologies (Lotus UK). This strategic move comes after the put option agreement signed between Geely and Lotus Technology in January 2023.
The acquisition will consolidate the manufacturing of Lotus’ sportscars and hypercars, along with the consultancy services offered by Lotus Engineering, under the unified Lotus brand. The transaction is expected to be completed by 2025, pending regulatory approvals.
This non-cash agreement is based on a pre-agreed pricing method, allowing Lotus Technology to gain control over Lotus UK and consolidate its financial results. The acquisition aligns with the business combination between Lotus Technology and L Catterton Asia Acquisition, a special purpose acquisition company.
The put option agreement, involving both Geely and Etika, grants them the right to sell their equity interest in Lotus UK to Lotus Technology, subject to Lotus UK and its subsidiaries selling over 5,000 vehicles in 2024.
Qingfeng Feng, the CEO of Lotus Technology, expressed confidence in the acquisition, stating that it marks a critical milestone in their strategic journey to fully integrate all businesses under the Lotus brand. This integration is expected to strengthen brand equity, enhance operational flexibility, and create internal synergies, ultimately generating substantial long-term value for shareholders.
In addition to this acquisition, Lotus Robotics, the intelligent driving arm of Lotus Technology, has signed a memorandum of understanding with HERE Technologies. The collaboration aims to develop an advanced Highway Navigation Pilot solution by producing an L2+ advanced driver assistance systems (ADAS) solution, powered by HERE HD Live Map, with plans for homologation in Europe in 2025.
As Lotus continues to expand its portfolio and technological capabilities, this acquisition and collaboration with HERE Technologies demonstrate the company’s commitment to innovation and excellence in the automotive industry. The future looks promising for Lotus as it continues to evolve and grow in the global market.
