Volvo Car AB and Geely Automobile Holdings Limited are considering combining their businesses to create a strong global group, which would accelerate financial and technological synergies between the two companies. This would be a combination between two strong companies.
Volvo Cars was founded in 1927 and is one of the most well-known and respected premium car brands, with sales of 705,452 cars in 2019 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding of China since 2010.
The considered combination would have the scale, knowledge and resources to be a leader in the ongoing transformation of the automotive industry. The combination would preserve the distinct identity of each of the brands Volvo, Geely, Lynk & Co and Polestar.
A combined company would have access to the global capital market through Hong Kong and with the intention to subsequently list in Stockholm as well.
Volvo Cars and Geely will create a joint working group to prepare a proposal to their respective boards.
A transaction would be carried out in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and be subject to mutually agreed terms and conditions, approvals of the respective boards and shareholders of Geely and Volvo Cars, regulatory approvals and prevailing market conditions.