Geely has withdrawn its bid from purchasing Malaysian automaker Proton, leaving PSA Group as the only interested party.
Company president An Conghui confirmed the news to the South China Morning Post but failed to state exactly why Geely was no longer in the running. However, Proton chairman Li Shufu was apparently uncertain about how it could work with an overseas partner.
Geely was thought to be the favorite to have its bid accepted, following a successful 2016 where its net profits rose by 126 per cent to $739 million.
Although Proton has suffered its fair share of financial woes in recent years, purchasing the brand could prove beneficial for a larger automotive corporation. As a matter of fact, the winning bidder will get Proton’s Tanjung Malim assembly plant that can produce 150,000 vehicles annually.
Additionally, owning a car assembly plant in Malaysia would also enable Proton’s future owner to ship vehicles tax free to the 10 members of the Association of Southeast Asian Nations.
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