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.
Volvo Car 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 combination of the two companies would result in a strong global group. We look forward to working with Håkan Samuelsson, president and CEO of Volvo Cars, to further investigate this opportunity with the goal to strengthen the synergies within the Group while maintaining the competitive advantage and the integrity of each individual brand,” said Li Shufu, chairman of Geely Holding Group.
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, approval from the respective boards and shareholders of Geely and Volvo Cars, regulatory approval and prevailing market conditions.