Mercedes-Benz has announced a new “strategic technology agreement” and “enhanced partnership” with Aston Martin.

The new agreement will see the Stuttgart-based firm grant Aston access to a range of “advanced” technologies, including “next-generation hybrid and electric powertrains”, as well as other vehicle components and systems.

This will be in exchange for new shares in Aston Martin, issued in “several stages over the next three years” up to a total value of £286-million. Since the German firm already owns 2,6 percent of Aston Martin’s common equity, the new deal will see its holding increased to a maximum of 20 percent. Interestingly, Mercedes-Benz says it “has no intention to increase its holding beyond this level”.

Wolf-Dieter Kurz, head of product strategy at Mercedes-Benz Cars, said the new deal followed an already “successful technology partnership” with Aston Martin.

“With this new expanded partnership we will be able to provide Aston Martin with access to new cutting-edge technologies and components, including next-generation hybrid and electric drive systems. The supply arrangements for these new technologies will be on agreed commercial terms. We look forward to continuing to work together with Aston Martin and we wish the company every success in its next stage of growth,” Kurz said.

Tobias Moers, the former head of Mercedes-AMG and now chief executive officer of Aston Martin, added he was “very excited to have joined the business to lead this transformation”.

“[The] expansion of our partnership with Mercedes-Benz is a critical step towards achieving our goals for Aston Martin. The capabilities of Mercedes-Benz technology will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently in the areas that truly differentiate our products.

“We have great ambitions for Aston Martin and I look forward to keeping you updated on our overall progress,” Moers said.