Volvo and Geely intend to restructure, what does this mean for both parties?

Recently, Volvo Car Group (hereinafter referred to as “Volvo Cars”) and Geely Automobile Holdings Co., Ltd. (hereinafter referred to as “Geely Automobile”) are planning to integrate their businesses to form a more powerful global enterprise group. This powerful alliance aims to promote the deepening of cooperation between the two parties and to achieve more effective synergy in technology research and development, cost control and finance.

Through business reorganization, both parties will have greater scale advantages, and have stronger professional capabilities and resources to continue to lead industry changes. It is reported that the integrated new group will continue to maintain the unique positioning of its Volvo Cars, Geely Automobile, Lynk & Co, Polestar and other brands; the reorganized new business group will be listed on the Hong Kong Geely Automobile to achieve docking with the global capital market , the next step will also consider listing in Stockholm. In addition, Volvo Cars and Geely Auto will set up a joint working group to formulate a plan for restructuring and report to the boards of directors of both parties.

  

Mr. Li Shufu, Chairman of Geely Holding Group, said: “The new business group will be stronger and more competitive after the reorganization. We will ask Volvo Car Group President and CEO Hanken Samuelson to coordinate a working group to evaluate the reorganization opportunity. It is expected that the synergy effect within the group will continue to be strengthened, and the competitive advantages of each brand will be further highlighted while maintaining their unique positioning.”

After Volvo Cars and Geely Auto agree on the terms of the restructuring, they will be reported to the boards of directors and shareholders of both parties for approval. After obtaining regulatory approval, the transaction will be subject to the prevailing market conditions and in accordance with the regulations of the Hong Kong Stock Exchange.

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