Volvo Cars, Geely Automobile Mull Merger and Stockholm Listing
February 10 2020 - 7:51AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Volvo Cars and Hong-Kong-listed Geely Automobile
Holdings Ltd. (0175.HK) are exploring a potential combination of
their businesses to speed up synergies and boost capital market
access through a joint Hong Kong and Stockholm listing.
Both companies are owned by China's privately-held Zhejiang
Geely Holding Group Co.
In a statement Monday, Volvo said a tie-up with Geely Automobile
would provide the scale, knowledge and resources to lead the
continuing transformation of the automotive industry. It would have
access to the global capital market through Hong Kong and the
intention would be to subsequently list in Stockholm as well, Volvo
added.
"We look forward to working with Hakan 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.
Volvo Cars and Geely will now create a joint working group to
prepare a proposal to their respective boards.
In addition to Volvo and Geely, Geely Holding Group counts
Proton and Lotus, as well as Lynk & Co. and Polestar among its
stable of brands.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
February 10, 2020 07:36 ET (12:36 GMT)
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