Racing Point to become Aston Martin F1 for 2021

Racing Point will become Aston Martin's works Formula 1 team from the 2021 season after team owner Lawrence Stroll agreed a £182 million deal to invest in the British carmaker on Friday.

Canadian billionaire Stroll led a consortium to buy the struggling Force India F1 squad in August 2018, leading to its evolution into Racing Point for the 2019 season.

Stroll was linked with a potential investment into Aston Martin recently as the manufacturer's stock price plummeted.

In a statement issued by Aston Martin on Friday, it was confirmed that the consortium led by Stroll had agreed a deal to take a 16.7 percent share in the company.

The investment documents also confirmed Aston Martin "has entered into a legally binding termsheet under which the Racing Point F1 team will become the Aston Martin F1 works team with effect from the 2021 season. This agreement is for a 10-year initial term and Aston Martin Lagonda will receive an economic interest in the team."

Stroll is understood to have been keen on reviving the name of a blue-chip brand in F1 as part of his initial takeover of Racing Point, but was unable to strike a deal to use either the Brabham or March name.

"I am very pleased that I, and my partners in the Consortium, have reached agreement with the Board and major shareholders to make this significant long-term investment," said Stroll.

"Aston Martin Lagonda makes some of the world's most iconic luxury cars, designed and built by very talented people. Our investment announced today underpins the Company's financial security and ensures it will be operating from a position of financial strength.

"I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands. I believe that this combination of capital and my experience of both the motor industry and building highly successful global brands will mean that, over time, we fulfil Aston Martin Lagonda's potential."

It will mark the return of Aston Martin to F1 for the first time since 1960, when a privateer entered its cars to a handful of races but failed to score any points. In recent years, the manufacturer has focused its efforts on sports car racing, particularly in the FIA World Endurance Championship, where it races in the GTE-Pro class and will enter the new Hypercar class in the 2020-21 season.

As part of the announcement, it was also confirmed that Aston Martin would end its existing F1 title partnership agreement with Red Bull Racing at the end of the current season, but remained committed to the delivery of the jointly-developed Valkyrie car at the end of the year.