(MENAFN - Qatar News Agency) Chinese auto giant Geely bought financially troubled Manganese Bronze Holdings (MBH), manufacturer of the iconic London Black Taxi. The cost of the deal is 11.04 million British pounds ( 17.44 million).
British company hasn't seen a profit since 2007. The company, which used to have a monopoly in its business niche, has faced tough competition with German Mercedes and Japanese Nissan on London streets. In the past year MB's shares fell 70 percent to 10 pounds, valuing it at 3 million pounds.
Five years ago, they were trading at more than 800 pounds each. Geely, which was Manganese's largest lender, now owns 80 percent of the company including plant, property, trade-marks and stock of unsold vehicles.
It has also received MBH's 48 percent stake in the joint venture manufacturing company in Shanghai.
"We are determined to restore the fortunes of this totemic marque which is known, recognized and admired all around the world," Li Shufu, Zhejiang Geely Holding Group chairman said in a press release.
"We will use our extensive knowledge and experience in the automotive sector to maximize synergies and develop commercial opportunities for the London taxi, "he added.