29 December, 2017
Geely's Chief Financial Officer Daniel Donghui Li said the company is "a well-recognised strategic long-term investor", and aims "to contribute positively to the long-term development of AB Volvo".
This June, Geely bought a 49.9% stake in Malaysia's Proton Holdings, as well as a 51% stake in British automaker Lotus. Volvo Trucks is one of the world's leading manufacturers of heavy trucks but it needs the assistance of a company better entrenched in the rapidly expanding Chinese market.
"We recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo", said Geely chairman Li Shufu in a statement.
Geely Automobile Holdings Ltd., the group's Hong Kong-listed stock, gained as much as 4.7% on Thursday to HK$27, the highest intraday level since 6 December. Nomura and Barclays have separately committed to sell the shares to Geely, which will be acquired by the Chinese automotive group after necessary regulatory approvals. Geely and Cevian declined to disclose the exact value of the transaction.More news: China spotted illegally selling oil to North Korea, report says
The deal makes Geely the biggest individual shareholder in AB Volvo and 15.6 percent of Volvo voting rights behind Swedish investment firm Industrivarden's 22.8 percent.
Earlier this year, Geely bought 49.90% of Malaysian vehicle business Proto and 51% of Lotus (owned by Proton) and in 2013 Geely saved the struggling London Taxi Company after purchasing it.
AB Volvo also makes buses, construction equipment, diesel engines and industrial engines. "It is edging closer to becoming a global auto maker with a complete line of vehicle businesses".
Geely has also formed an electric-vehicle joint venture with Volvo Cars, pledging an investment of 5 billion yuan (US$758 million) to support Polestar-branded high-performance electric cars.