Geely will buy a stake in yet another Volvo

Geely will buy a stake in yet another Volvo

December 27, 2017 0 By autotimesnews

The Chinese company Geely, which owns the brands Volvo, Proton and Lotus, buys an 8.2% share of the Swedish truck manufacturer AB Volvo. This is reported by the Reuters agency.

Shares of the company will receive from the investment firm Cevian Capital, which noted that Geely independently made a request for the acquisition of the asset. The amount of the transaction is estimated at about 3.3 billion dollars (according to other sources, 3.8 billion dollars).

Commenting on the deal, Geely noted that the company’s plans do not include the integration of Volvo Cars and AB Volvo into one company. Automakers split in 1999.

The manufacturer of cars Volvo has passed under control Geely in 2010. The Swedish company bought the Chinese from Ford. The amount of the transaction then amounted to 1.8 billion dollars. Together with Geely, Volvo has already developed a modular platform for compact models – CMA. This chassis was used to create the XC40 crossover.