Geely Acquires 8.2 Per Cent Stake In Volvo Trucks

Zhejiang Geely Holding Group, commonly known as Geely Holding is China's leading privately owned automotive group. The automaker already owns controlling stake in the Volvo cars and now it has bought a major chunk of stake in Volvo's truck and busses business. Geely bought 8.2 per cent stake from Cevian Capital which also amounts to 15.6 per cent voting rights. Volvo trucks and busses or 'AB Volvo' is Sweden's largest manufacturer of trucks, busses, construction equipment, diesel engines, marine engines and industrial engines. Geely also owns majority stake in automakers such as Lotus, Proton, the London Electric Vehicle Company and flying car maker Terrafugia Inc.

Speaking on the acquisition, Geely Holding Chairman Li Shufu said, "We are delighted to have reached agreement with Cevian to acquire its holding in AB Volvo, making us the largest holder of share capital in a company that leads the world in many aspects of commercial vehicle development, manufacturing and sales. Given our experience with Volvo Car Group, we recognise and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo. We will support the Board of Directors and the management of AB Volvo in their continued execution of the current strategy."

Geely will acquire from Cevia Capital a total of 8.847 Crore A-shares and 7.877 Crore B shares in AB Volvo. On completion and following necessary regulatory approvals, Geely Holding will become the largest holder of AB Volvo's share capital. In India, Volvo Cars and Volvo Busses/Trucks already share manufacturing facilities near Bangalore.