Volvo Cars To Buy Parent Geely Holding’s Stake In China JVs: Report

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  • The report added that Volvo said the transactions, which are subject to regulatory approval, will be carried out in two steps,
  • The Gothenburg-based carmaker, bought from Ford Motor Co by Geely in 2010, is exploring capital market options including a potential initial public offering (IPO) and stock market listing

As per a report by Reuters, Sweden’s Volvo Car Group said that it has struck a deal to buy out parent company Geely Holding from their joint ventures in China. The report added that the company said that under the deal, whose financial details were not disclosed, Volvo will have full ownership of its manufacturing plants in Chengdu and Daqing, its national sales company in China and its R&D facility in Shanghai.

The report added that Volvo said the transactions, which are subject to regulatory approval, will be carried out in two steps, starting in 2022 when the joint venture requirement for auto manufacturing in China will be lifted, and seen formally completed in 2023.

The Gothenburg-based carmaker, bought from Ford Motor Co by Geely in 2010, is exploring capital market options including a potential initial public offering (IPO) and stock market listing.

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