AP reported that Malaysian conglomerate DRB Hicom Berhad will buy national carmaker Proton in a MYR 3 billion deal that could help revive Proton's flagging fortunes.

DRB Hicom said that it will pay MYR 1.29 billion for government investment arm Khazanah Nasional's 43% stake in Proton. It will then make an offer for all Proton shares it doesn't own at MYR 5.50 a share that officials say will bring the total deal to MYR 3 billion.

Khazanah said that the sale would put Proton on a more competitive footing.

Proton has seen its fortunes fade, with its domestic market share dwindling to under 30% from more than two thirds just over five years ago due to greater competition.

(Sourced from Associated Press)