The largest shareholder of AB Volvo is GeelyDecember 28, 2017
The Chinese automaker buys a strategic share of a Swedish company engaged in the production of commercial vehicles and industrial equipment.
The Geely Holding Group has agreed with Cevian Capital’s management of the acquisition of 8.2% of share capital and 15.6% of voting rights in AB Volvo. This Swedish concern manufactures trucks, buses, construction machinery, diesel engines, also marine and industrial engines.
Under the terms of the agreement, 88.47 million shares of type A and 78.77 million shares of type B will be transferred to the leading private automaker in China. The document was signed by Cevian co-founder Cristo Gartel and executive vice president and chief financial officer of the Geely holding company Daniel Donghuei Lee.
It is reported that after the conclusion of the deal and obtaining approval from the regulatory authorities, the holding company Geely will become the largest shareholder of the Swedish concern. “We are pleased that we have managed to reach agreement with Cevian on acquiring stake in AB Volvo. This makes us the largest shareholder in a company that is a world leader in the production and sale of commercial vehicles, “said Geely Lee Shufa, chairman of the board.
“Taking into account our experience with Volvo Car Group, we recognize and appreciate Scandinavian history and culture, leading in the market, breakthrough technologies and environmental abilities of Volvo Volvo. We will support AB Volvo’s board of directors and management in fulfilling their current strategy, “he added.
“Geely Holding enjoys a good reputation as a long-term strategic investor and therefore we are committed to contributing positively to the development of Volvo Volvo,” comments Daniel Donghuei Lee. “We will be able to convey our global experience, experience in the Chinese market, as well as advanced research and development, especially in the area of electrification and autonomous driving. We are confident that through our joint venture with Volvo Volvo, we will be able to contribute to the development of the company in the global market and the strengthening of the Volvo brand. ”