Geely, Volvo consider combination of businesses

Source: Xinhua | 2020-02-11

Volvo Cars and Geely Automobile Holdings Limited, the publicly traded auto unit of the Zhejiang-based Geely Holding Group, are considering a possible restructuring through a combination of the businesses of the two companies, according to a statement Monday.

The considered combination intends to preserve the distinct identities of Volvo, Geely, Lynk & Co and Polestar brands.

The combined company would have access to the global capital market through Hong Kong, where Geely Automobile Holdings Limited is currently traded, with the intention of a subsequent listing in Stockholm.

This integration is expected to accelerate financial and technological synergies between the two companies, said Li Shufu, chairman of Geely Holding Group that wholly owns Volvo.