Zhejiang Geely Holding (ZGH) Group has announced it plans to secure an 8.2% stake in AB Volvo from Cevian Capital, which is reportedly priced at around US$3.3 billion (about RM 13.4 billion). The deal would make ZGH the largest shareholder at the Swedish truckmaker and the second biggest by voting rights (15.6%).
“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.” said ZGH chairman Li Shufu said in a statement.
The Chinese company also owns Volvo Cars, which was split from AB Volvo in 1999, although it has no plans to merge both companies. AB Volvo also owns 45% of Dongfeng Commercial Vehicles, one of the largest truckmakers in China.
“Geely Holding is a well-recognised strategic long-term investor, and as such we aim to contribute positively to the long-term development of AB Volvo. Geely Holding will be able to contribute its global knowledge, Chinese market expertise and leading research and development capabilities especially in the fields of electrification, autonomous driving and connectivity, to AB Volvo to further its global development, and strengthen the Volvo brand,” added Daniel Donghui Li, chief financial officer and executive vice president of ZGH.
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It is GUD to be Rich. It is better if U are Filthy Rich like Geely. They invest their $$$ into well known AB Volvo from Cevian Capital.
By doing so, Geely have bought themselves into a proud Scandinavian history, culture, leading market positions, breakthrough technologies & environmental capabilities of AB Volvo. Is Geely smart or what?!
Geely-Volvo-Daimler-Lotus.
The last paragraph says it all presumerly including the “vision” for Proton.
Btw, AB Volvo is more than just truckmaker, also busmaker, construction equipment etc as well.
Oso Volvo Penta makes industrial engines
And also Marine products such as Volvo Penta
Mana itu Proton Fanbois? Awaiting the boast that now Protons cars are as tough, strong as Volvo trucks & as powerful as Volvo Pentagon engines.
No such thing as Volvo Pentagon. Thats in USA. Theres only Volvo Penta for marine & industrial engines. Get ur facts right, boy.