Anyone would say that the stars aligned when Geely Holdings decided to acquire Volvo Car Group to Ford Motor Company. Since it is in your hands, the sales and image of the Scandinavian firm have done nothing but grow and improve year after year. However, its now parent company does not put aside its efforts to grow worldwide, and another alignment of stars has been given that puts the Volvo dedicated to the manufacture of cars and the one dedicated to The trucks.
AB-Volvo (trucks) and Volvo Car Group (cars) separated their destinies almost two decades ago, when the second decided to put the first up for sale; however, now that Geely has acquired an 8,2 percent stake in AB Volvo, both groups walk hand in hand again. The operation has had an approximate cost of 3.300 million dollars, and means turning the Chinese group into the largest individual shareholder in the truck manufacturer and the second with the greatest power on the board of directors.
After the completion of the transaction, Li Shufu, Chairman of Geely released an official statement explaining that
"given our experience with Volvo Car GroupWe recognize and value AB Volvo's proud Scandinavian history and culture, leading market positions, innovative technologies and environmental capabilities."
The shareholding that Geely has acquired corresponds to that Cévian Capital has released. However, for the operation to be carried out satisfactorily, and while the Swedish government bodies give their approval to it, it has been the entities Nomura International Plc and the bank Barclays Capital Securities Limited those who have acquired this share package, for when they have the authorization, transfer them to the company that Geely has created for this purpose.
In any case, the Chinese giant has declared that for now it has no intention of unify in the same company the activities of the respective Volvo. It remains to be seen if the Asian conglomerate finally takes over all of AB Volvo's shareholders, or if, on the contrary, it continues to diversify its business offer as it has been doing up to now.
Source – Geely