Fri, Dec 29, 2017 - Page 10 News List

China’s Geely buys stake in Swedish truck maker Volvo

AP, BEIJING

The Chinese owner of Sweden’s Volvo Cars Corp is buying a stake in truck manufacturer AB Volvo, expanding a portfolio of vehicle brands that includes shares in Malaysia’s Proton Holdings Bhd and Britain’s Lotus Cars Ltd.

Geely Holding Group (吉利控股) on Wednesday said the acquisition of shares from Cevian Capital AB, a fund manager, would give it 8.2 percent of Volvo’s share capital and 15.6 percent of the voting rights. Financial terms were not disclosed, although analysts estimated the value of the deal at about 27 billion kronor (US$4.3 billion).

The Swedish company, which also makes buses, construction equipment and diesel engines, was the parent of Volvo Cars until 1999, when it was sold to Ford Motor Co. Geely bought Volvo Cars in 2010.

“We recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo,” Geely chairman Li Shufu (李書福) said in a statement.

The transaction would make Geely the biggest single shareholder in Volvo and the second-biggest holder of voting rights.

Geely would be able to provide Volvo with valuable access to the Chinese market and know-how in the field of electric and self-driving vehicles, Cevian Capital cofounder Christer Gardell said.

Geely would support Volvo management’s current strategy, Li said.

Geely owns Geely Automobile Holdings Ltd (吉利汽車), one of China’s biggest independent automakers. It in May agreed to buy 49.9 percent of Proton and 51 percent of Lotus, which was owned by the Malaysian automaker.

Geely also launched a new brand, Lynk & Co, last year.

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