June 28th 2018, Hangzhou China. Zhejiang Geely Holding Group (“Geely Holding”), China’s leading privately-owned automotive group, today announced the completion of its acquisition of shares in AB Volvo, the leading Swedish manufacturer of trucks, buses, construction equipment, diesel engines, and marine and industrial engines.
The transaction makes Geely Holding the largest holder of AB Volvo’s share capital and second largest holder in voting rights with 88.47 million A-shares and 78.77 million B shares.
The transaction follows on an agreement between Geely Holding and Cevian Capital (“Cevian”), disclosed on December 27, 2017. Under the terms of the agreement, Cevian agreed to sell the shares to Nomura International Plc and Barclays Bank Plc, which in turn committed to sell the shares to Geely Holding following necessary regulatory approvals. The transaction has since received all necessary approvals and is now completed.
Daniel Donghui Li, Executive Vice President and Chief Financial Officer of Geely Holding said: “We are excited to now formally own the shares in AB Volvo. We look forward to engaging with the other owners, with which we share the common interest of supporting AB Volvo in executing their strategy and generating shareholder value. Discussions will be focused on how we as owners can support the company in the best possible way.”
The investment in AB Volvo follows Geely Holding’s 2010 acquisition of Volvo Car Group from Ford Motor Company, and will form part of an automotive manufacturing and investment portfolio that also includes a controlling stake in Geely Auto Group as well as strategic investments in PROTON Holdings Bhd, Lotus Advance Technologies, Daimler AG and ownership of the London Electric Vehicle Company (LEVC) and the flying car company Terrafugia Inc.