The Chinese Geely Automobile Holdings Limited, headquartered in Hong Kong announced today that the management of the company is in preliminary discussions with the management of Volvo Car AB (“Volvo Cars”) regarding a possible restructuring through a combination of the businesses of the two companies into a strong global group that could realise synergies in cost structure and new technology development to face the challenges in the future.
The combined business, if the merger is carried out, will be listed in both Hong Kong and Stockholm to enable it to access the capital markets.
Despite merger of the companies, the distinct identity of each of the brands Geely, Volvo, Lynk & Co and Polestar will be preserved.
As the Proposed Transaction is only preliminary in nature, it may or may not proceed, shareholders and potential investors are reminded by Geely to be cautious when dealing in the securities of the Company.
Geely Automobile Holdings Ltd, a subsidiary of Geely, is listed on the Hong Kong Stock Exchange since 13th February 2017
Zhejiang Geely Holding Group Co. Ltd acquired Volvo Cars from Ford in 2010 and an 8.2% of truck maker AB Volvo (and 15.6% of its voting rights) from Cevian Capital for more than $3.2Bn in December 2017.
Zhejiang Geely Holding (ZGH) completed the acquisition of British taxi maker The London Electric Vehicle Company in 2013, and acquired a majority stake in British sports carmaker Lotus Cars in 2017.
ZGH business is divided into five sub-groups: Geely Auto Group which includes the brands Geely Auto, Lynk & Co, PROTON, and Lotus; Volvo Car Group which includes the brands Volvo Cars and Polestar; Geely New Energy Commercial Vehicle Group which include the brands London Electric Vehicle Company and Yuan Cheng; Geely Group (New Business) which includes the brands Caocao, Terrafugia, Qianjiang Motorcycles, Joma, and other new businesses; and Mitime Group which includes ZGH educational institutions, motorsports business, and tourism business. ZGH has global operations spanning the automotive value chain, from research, development and design to production, sales and service.
Image over the headline.- Geely logo and Volvo logo. Respectively © Geely and © Volvo.