Geely Buys $3.3 Billion Stake In Volvo Trucks

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.

PHOTO GALLERY

  • rover10

    Slowly but surely the shadow from the East possesses more and more of the West’s interests? Some say, it’s a dispersing of interests away from the mother state? Just as most multinational companies do?

    • That’s a very conservative old time views, world has gone globalized and more capital equals safe employment in its respective country and some case brings company out of grave.

      JLR and Volvo are among those who are benefited from it. And they kept jobs open in UK and Sweden respectively.

      • rover10

        You may be right. I don’t necessarily disagree with the policy conservative or otherwise, it’s an undeniable fact that China creep can be both advantageous as it can be destabilizing, in terms of global industrial balance. China is emulating the policy adopted by the USA in the 20th century, I quote, ‘To Boldly Go’ forward by buying up European and Asian businesses on mass, to which Trump demands that such practises should stop, as it’s inherently dangerous to indiginess US industry……odd that don’t you think?

        • It’s more like “either we do it or we don’t” policy, beyond buying European businesses, they pretty much conquered the whole Africa which means that they are in control of the world natural resources that is used for Industry. And again what is a “US industry”. If we look at the automotive plant, a lot of foreign car makers open their plant in US. While some US car makers move their operation to Mexico or Canada because it’s cheaper. Trump is delusional, he can’t look the fact that US is aging dinosaurs who still believes in grandeur.

          You should google Vice report called “Meet the Chinese billionaire who opened shop in Ohio”. You see that they are purely in business, nothing had to do with Politics like Mr. Trump said. If US want to compete again, they must revamp their business policy rather than blame it to Politics and Trade agreement.

          • rover10

            One factor that concerns me is the two faces of China. One face is comfortable to allow an open door to internal investment and the establishment of global manufacturing plants. These produce enormous amounts of product, which gainfully employs thousands. However, the other expression, is the establishment of a growing navy with global reach, plus the creation of numerous artificial islands in the South China sea? If the Chinese are comfortable with allowing an open door to international industry, why the need for such an expansive defence policy?

          • Since this is automotive site I prefer if we kept it that way. I left politics outside this site.

  • I still thinking that they want to merge the brand or put them under one holding company. Or maybe they thought they can confuse Chinse buyer thinking their Volvo trucks is made by the same Volvo cars.

  • OdysseyTag

    That’s big for the commercial vehicles industry as Renault, Mack and UD (Nissan) are apart of Volvo Trucks.

  • brn

    “Geely’s experience in the development of electric and autonomous vehicles should help”

    Bwahahahahahahahahahahahahaha! Oh, my side hurts.

    • Actually in terms of electrification, the Chinese are really good at this. Geely has taken advantage of electric technology towards their brands. And Chinese tech company is one of the forefront of batteries technology.

      So you can laugh now mate.

      • sidewaysspin

        The chinese are good at nothing except at stealing western technology through these fraudulent aquisitions made with push button fiat money. I’m so hoping cryptos will put an end to this abuse by governments.

      • brn

        Geely has electric cars. That doesn’t mean they’re good at it. It certainly doesn’t mean Volvo trucks can learn from Geely about autonomous vehicles. It’d be the other way around.

        Yes, I’m still laughing. Bwahahahahahahahahahahahahaha!

        • Lwt’s just focus on the electric technology, Remember what Geely group is? Volvo Cars, and that the technology is transferred within their own brand. That is why you got the London Taxi PHEV coming out in relatively fast time.

  • Try to understand who owns who now… Volvo trucks and Volvo cars always managed to work well together even after being completly seperated, they kept their identity, logo, spirit, sponsoring common. Now I guess it will be easier.

  • smartacus

    Dongfeng sounds like such a naughty word

    • brn

      or two naughty words put together.

  • sidewaysspin

    Basically the chinese regime can print all the money necessary for chinese companies to buy the whole world if necessary, and it’s what they’re doing.

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