On February 10, Volvo Car Group (hereinafter referred to as “Volvo Cars”) and Geely Automobile Holding Co., Ltd. (hereinafter referred to as “Geely Auto”) announced that they are planning to integrate their businesses to form a stronger global enterprise group. The strong alliance is aimed at promoting deeper cooperation between the two sides and more effective synergy in technology research and development, cost control and finance.
From the perspective of both parties, through business restructuring, the two parties will have greater scale advantages, stronger professional capabilities and resources to continue to lead the industry change; meanwhile, the new integrated group will continue to maintain its Volvo Cars, Geely Auto, and Lynk&Co , Polestar and other unique positioning of brands. The reorganized new business group will realize the connection with the global capital market through the listing entity of Hong Kong Geely Automobile, the next step is to consider listing in Stockholm.
Geely Auto said that as of now, the company has not made a decision and has not formulated a clear timetable. Geely Auto and Volvo Cars will set up a joint working group to formulate a plan on the reorganization and report to the boards of directors of both parties. Li Shufu, Chairman of Geely Holding Group, said, “The new business group after the reorganization will be stronger and more competitive. Volvo Car Group President and CEO Hanken Samuelson will be asked to coordinate the working group to evaluate this reorganization opportunity. The synergy effect within the company has been continuously strengthened, while its brands maintain their unique positioning, their competitive advantages will be further highlighted. “
According to reports, after Volvo Cars and Geely Auto have reached an agreement on the restructuring terms, they will report to both the board of directors and the shareholders’ meeting for approval. After obtaining regulatory approval, the transaction will be conducted in accordance with the prevailing market conditions and in accordance with Hong Kong Stock Exchange regulations.
On March 28, 2010, Geely Holding Group and Ford Motor Group signed the final 100% equity acquisition agreement of Volvo Car Company; on August 2 of the same year, the two parties held a delivery ceremony in London, UK. After years of development, the business of both parties has achieved rapid development. Data show that Geely Automobile has achieved sales of 1.362 million vehicles in 2019, which is the sales champion of Chinese auto brands; Volvo Cars’ sales in 2019 also exceeded 700,000 vehicles. In order to further strengthen cooperation and synergy and explore greater growth potential, Geely Automobile and Volvo Car announced the above plan. We will continue to pay attention to the follow-up progress.