Geely completes deal to buy 14.9 per cent stake in AB Volvo
Geely announced in February it had bought a stake of almost 10 per cent in Germany’s Daimler, AB Volvo’s main rival
China’s Geely Holding has assumed ownership of a 14.9 per cent voting stake in Swedish truck maker AB Volvo, a disclosure notice showed on Monday, completing a deal which has been pending since December.
Geely’s deal to buy activist fund firm Cevian Capital’s stake in the Swedish truck and construction equipment maker was announced on Dec 27 last year.
Under the terms of the deal, Nomura International Plc and Barclays Capital Securities Limited first acquired Cevian’s shares, with an undertaking to sell them on to Zhejiang Geely Holding Group, as the company is formally known, when the necessary regulatory approvals had been received.
Geely Chief Financial Officer Daniel Li was quoted by Swedish public service radio SR in April as saying approval from Chinese authorities had been obtained.
Geely announced in February it had bought a stake of almost 10 per cent in Germany’s Daimler, AB Volvo’s main rival.
The Chinese company’s shares in AB Volvo will be held by Geely Sweden Industry Investment AB, according to another disclosure notice.