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Geely completes Volvo acquisition

08-03-2010 08:59 BJT

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Chinese auto maker Geely has completed its acquisition of Ford Motors' Volvo unit, in a 1.5 billion dollar U.S. deal. It looks to give the small-but-ambitious Chinese auto producer a global brand. But there are huge management challenges ahead.

This is China's biggest foreign auto acquisition, and an unusually large deal for a private Chinese company. Geely says it paid 1.3 billion U.S. dollars in cash, plus a 200 million U.S. dollar loan note. That's less than the 1.8 billion dollar price announced in March, due to changes in pension obligations and working capital.

Chinese auto maker Geely has completed its acquisition of Ford Motors' Volvo unit, in a 1.5 billion dollar U.S. deal.
Chinese auto maker Geely has completed its acquisition of Ford Motors' Volvo 
unit, in a 1.5 billion dollar U.S. deal.

Volvo will keep its headquarters and manufacturing presence in Sweden and Belgium, and its board will have autonomy over company strategy.

Review: Geely's road to acquisition

The take over of Volvo was an ambitious move for Geely, previously a little known Chinese auto maker. And it wasn't without some hurdles. Let's take a look at the road to acquisition. Full story >>

Preview: Geely Chairman confident in Volvo's future 

With the deal now done, the real challenge for Geely will lie ahead as it aims to restore Volvo to long term profits. Chairman of Geely Group and Volvo Car Corporation, Li Shufu, told China Central Television that he hopes to restore Volvo to a leading position in the global luxury auto market. Full story >>


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