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.
Volvos were once widely seen as the safest cars in the world. In 1999, the Ford Motor Company bought the automobile operations of Swedish-based Volvo for about 6.4 billion US dollars. However, over the past ten years, Volvo has not generated Ford-expected profits. Sales of Volvo have been in decline.
Early in January 2008, Zhejiang-based Geely proposed its Volvo acquisition plan to Ford. But it was rejected. The privately-owned Chinese car maker's first attempt at taking over Volvo had failed.
The situation developed when the unprecedented global financial crisis forced Ford to unload its overseas luxury vehicles, and focus on its own brand. At the end of 2008, Ford put Volvo on the market.
This time, it named Geely its preferred bidder. Geely offered about 2 billion US dollars, less than one-third of what Ford paid for Volvo a decade before.
In December 2009, the two sides reached agreement over most of the terms for the take-over. But the negotiations then got stuck for three months on further details, before the two sides signed an agreement on Geely's 1.8 billion-US-dollar purchase of Volvo.
Last week, Geely unveiled the deal had received all necessary government approvals... paving the way to finally seal the deal.