Business Line reported that Investindustrial, the Italian private equity fund, has signed a deal to buy a 37.5% stake in Aston Martin, joining Kuwait's Investment Dar, as the luxury car maker's major investor and seeing off competition from Mahindra & Mahindra.

Gaydon based luxury carmaker said that Investindustrial will pay EUR 150 million in the form of a capital increase.

Mr David Richards chairman of Aston Martin in a statement said that "Investindustrial's new investment reflects and sustains the unique position of Aston Martin within the industry."

The Italian private equity fund, which has assets of around EUR 3 billion under management is not a new comer to the automotive sector having bought Ducati in 2006, following which the company underwent a restructuring program. It sold Ducati to Volkswagen's Audi division for an estimated €860 million earlier this year.

Unions gave news of the investment a cautious welcome, calling for further assurances on the long term future of the plant and its 1,600 strong work force, as well as details of a plan to invest up to half a million pounds over the next 5 years into new product development and expanding the dealership network globally.

Investindustrial said that it hoped to work with Investment Dar and Aston Martin management to bring about the kind of transformation and rejuvenation it undertook with Ducati, including by expanding the range of models, and strengthening its dealership network throughout the world.

Source - Business Line