The problem generally is not one of weak strategic logic.
Cancel Search This page is for personal, non-commercial use. You may order presentation ready copies to distribute to your colleagues, customers, or clients, by visiting http: Dec 27th at 8: Geely's expertise in the Chinese market and skills in developing electric and autonomous vehicles should help the truckmaker to expand, although there were no plans to reunite with Volvo Cars, which was split from AB Volvo in AB Volvo owns 45 percent of Dongfeng Commercial Vehicles, one of China's largest truckmakers, and also has a significant construction equipment business in China.
There are "no plans to merge" the two Volvos, a Geely spokesman confirmed when contacted by Reuters. Both companies are based in Gothenburg, Sweden's second largest city. The value of the investment amounted to around Swedish daily Dagens Nyheter said Geely paid 3.
Geely and Cevian declined to disclose the exact value of the transaction. The deal makes Geely the biggest individual shareholder in AB Volvo and second ranked in terms of voting rights behind Swedish investment firm Industrivarden. Cevian will use the proceeds for new investments, and it is currently buying into another company, Gardell added.
While Volvo's shares initially rose on the deal, both the A and B shares traded more than 2. However, Volvo shares have gained almost 50 percent this year as it and rivals in the truck industry such as Germany's Daimler and Volkswagen hit a sweet spot thanks to robust demand in major markets.
Volvo has also begun to reap the benefits from years of restructuring measures, including major cost-cutting programs, selling off non-core businesses, and management changes. Cevian had called for a break-up of the company, suggesting the smaller Volvo Construction Equipment and engine and technology firm Volvo Penta should be separated from the main truck making business.
It also owns the company that makes London's black cabs and has invested in sports carmaker Lotus. Sales and profitability at Volvo Cars has jumped under Geely.
The car business made an operating profit of In a sign of its ambitions, the Chinese company last month offered to take a stake of up to 5 percent in Daimler via a discounted share placement but was rebuffed, according to sources with knowledge of the talks.
In the latest deal, Geely will acquire Industrivarden owns mostly A shares and controls Nomura International Plc and Barclays Capital Securities Limited have agreed to acquire Cevian Capital's shares, and will sell them to Zhejiang Geely Holding Group when the necessary regulatory approvals have been obtained, the companies said.
Reporting by Johannes Hellstrom.Dec 27, · Zhejiang Geely Holding Group Co. is set to become the largest shareholder in Swedish truckmaker Volvo after activist investor Cevian Capital decided to sell its stake.
The Chinese auto. China's Zhejiang Geely Holding Group completed the purchase of Terrafugia, a flying-car developer in Woburn, Mass.
Terrafugia expects to deliver its first flying car in and plans to launch a vehicle capable of vertical takeoff and landing by Watch video · Geely's new stake in AB Volvo will make it the largest shareholder in the Swedish truckmaker.
Vivek Vaidya of Frost & Sullivan weighs in on the acquisition. Geely Automobile, which is trying to get rid of the low-end car manufacturer, will cherish the value of the Volvo brand that will be available soon, and will maintain the traditional position of Volvo's world-class brand at all costs.
The truck company is the third-largest heavy-duty truck producer in North America under both the Volvo Truck and Mack Truck branded names, with similar market share influence in the European truck market. The move reportedly makes Geely one of the largest shareholders in the truck maker.
China's Geely Holding [ph-vs.com], owner of the Volvo car brand, is buying an percent stake in Swedish truckmaker AB Volvo from activist investor Cevian Capital, worth around $ billion at.