- Volvo Cars to buy out parent Geely from Chinese JVs
- Two step deal seen formally completed in 2023
- Geely considering options for Volvo Cars, including IPO
STOCKHOLM/BEIJING, July 21 (Reuters) – Volvo Cars has struck a deal to buy out parent company Zhejiang Geely Holding (GEELY.UL) from their joint ventures in China, in a move that could make a potential initial public offering (IPO) for the Swedish automaker more attractive to investors.
Hangzhou-based Geely, which also owns a 9.7% stake in Daimler (DAIGn.DE), said earlier this year it was considering options for Volvo, including an IPO and stock market listing. In February, Geely’s Hong Kong-listed unit Geely Automobile (0175.HK) and Volvo Cars scrapped plans to merge. read more
“These two transactions will create a clearer ownership structure within both Volvo Cars and Geely Holding,” Geely’s CEO Daniel Li said in a statement, which did not refer to the possible IPO.
Analysts expect other foreign…