China’s Geely Holding, which already owns Volvo Cars, has bought an 8.2 percent stake in Volvo Trucks for around $3.3 billion at current market prices.
Cevian Capital has agreed to sell the 8.2 percent stake of Volvo Trucks to Geely Holding but the two companies didn’t disclose the value of the transaction, Reuters reports.
This will make Geely Holding Volvo Trucks’ largest owner by capital and the second biggest by voting rights, following the investment firm Industrivarden.
Geely’s experience in the development of electric and autonomous vehicles should help the Swedish truck maker to expand, which also owns 45 percent of Dongfeng Commercial Vehicles, one of China’s largest truck companies.
“Given our experience with Volvo Car Group, we recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo,” Geely Holding Chairman Li Shufu said in a statement.
Geely confirmed that there are no plans to connect Volvo Cars with Volvo Trucks, with the two companies being split since 1999.