The company, which owns Volvo cars, now has a flag on the independent trucking company that owns Volvo’s name. Geely holding will buy an 8.2% stake in Volvo, which is said to be worth $3.3 billion.
Geely will acquire the entire stake in Cevian Capital. In doing so, it has become the largest shareholder in the company’s capital.
The deal will give AB Volvo access to geely’s market knowledge, resources and technology. Geely acquired Volvo cars in 2010, and these technologies are beneficial. For example, geely has set up a company to create platforms and technologies for its car brands, including the CMA hardware for small vehicles.
“The agreement will provide a new AB Volvo not only large and loyal shareholders, but also will become the future value creation strategy important areas (such as electrification, autopilot, connectivity and the Chinese market) important expert, founder said Christer Gardell said in a statement.
Geely chairman li shufu said in a statement: “with our experience of cooperation with Volvo group, we recognize and value AB Volvo’s proud history and culture of Scandinavia, leading market position, breakthrough technology and environmental protection ability.
Although geely and Volvo AB company has a new partnership, Volvo will remain with truck company (Volvo Cars) separation, Volvo car company in 1999 from AB Volvo car company. AB Volvo offers a range of commercial trucks, engineering trucks and buses, and has a 45 per cent stake in the dongfeng commercial vehicle, one of China’s largest truckmakers.