KUALA LUMPUR, March 23 — Chinese carmaker Geely Automobile Holdings announced yesterday it has withdrawn its attempt to acquire a controlling stake in local marque Proton Holdings Bhd, said a report by South China Morning Post.

The president of Geely, which among others owns Volvo Cars Corp and the London Taxi Company, An Conghui, however did not state the reason behind the decision.

Geely was said to be in the lead to become the national carmaker’s technical partner, ahead of French carmakers PSA Group and Renault SA.

The Star reported that the Chinese company and the other two car manufacturing giants want at least 51 per cent in Proton’s manufacturing plant in Tanjung Malim.

It reported that the net value of the plant was estimated to be at RM501 million in March 2016.

This comes as Geely reported better-than-expected earnings for 2016 yesterday, with its net profit rising by 126 per cent to 5.1 billion yuan (RM3.28 billion).

Meanwhile, its revenue went up by 78 per cent to 53.7 billion yuan after selling 765,970 vehicles in 2016, an increase of 50.2 per cent from 2015.

Last April, in a move to boost plummeting sales, the government provided RM1.5 billion in the form of soft loan to the national carmaker.

Several conditions were imposed prior to giving out the huge fund, which among others, include getting Proton to show a strategic plan to expand its business locally and in the international market.

According to the news report, Proton had sent out proposals to 14 original equipment manufacturers to be its partner from as early as June 2016. — AFP-Relaxnews