The Chinese company Geely buys a 8.2% stake in the Swedish concern AB Volvo, better known as the Volvo Group, worth 3.3 billion euros. As noted by the seller - investment company Cevian Capital - the initiator of the transaction is Geely, which made a request for the acquisition of assets of AB Volvo.
The company already owns the brands Volvo, Proton and Lotus, and now will own AB Volvo, which separated from Volvo Cars in 1999. Geely's experience in the Chinese market and skills in developing electric and autonomous vehicles should help the Swedish automaker expand, although the Chinese do not have plans to rejoin Volvo Cars and AB Volvo.
AB Volvo owns a 45% stake in the largest Chinese automotive company Dongfeng, and also delivers its own construction machinery to the Chinese market.
The transaction amount is about 3.26 billion euros. The exact figure Geely and Cevian were refused.
The deal with Cevian Capital makes Geely the largest single shareholder in the Volvo Group and will receive the largest, sixth (15.6%) of the votes in the board of the concern. Now the company will occupy the second place in terms of voting rights after the Swedish investment firm Industrivarden (INDUa.ST).
In the property of Geely, Volvo moved in 2010. For the Swedish automaker, the Chinese paid Ford 1.8 billion dollars. In the list of joint developments Geely and Volvo modular platform for compact models - CMA, which was used in creating the crossover XC40.
In the summer of this year, Geely acquired the company Terrafugia, engaged in the development of flying cars.