Sin categoría
THE GEELY CHINESE GROUP ACQUIRES 8.2% OF VOLVO AB.
January 8, 2018 - Sin categoría
The company, which already owns the Swedish brand, acquires 8.2% of the truck manufacturer.
The Chinese automaker Zhejiang Geely announced on Wednesday the purchase of 8.2% of AB Volvo, the second truck manufacturer in the world. The Chinese company, which also owns the Volvo car division, becomes the first shareholder of the group, although it will not have the majority of the voting rights. The value of the transaction amounted to the figure of 27,200 million crowns (about 3,260 million dollars), according to a calculation of Reuters, although none of the parties revealed the exact value of the transaction. In the operation, Geely, the Chinese company, which also owns the Volvo car division, becomes the group’s largest shareholder, although it will not have the majority of the voting rights. According to the president of the Chinese company, there will be significant changes in the direction of AB Volvo and strategic decision making will continue in Sweden.
The Volvo group, like many other car firms, decided two decades ago to separate Volvo Car Group from AB Volvo. The first was acquired in 2010 was acquired by the Chinese company, Geely. Geely has confirmed that it is not his intention to join them again, although he admits that he will use the same penetration strategy in the market he used with the car division, with this acquisition he hopes to join efforts in the development of electric motors, since both Volvo as Geely announced that they will not present any new engine model from 2019.
The Chinese company invested around 9,000 million euros in the Swedish brand, which at that time was going through a bad time, and achieved an indisputable success in its penetration in the market of the Asian giant, as well as in the recovery of sales and image globally. Volvo last year sold 534,000 vehicles, a record high, of which almost 91,000 units were in China.
