Sold, Volvo to Geely for $1.8 billion

Posted on Mar 28, 2010 by
Volvo sold to Geely for $1.8 billion

sold to for $1.8 billion

After months of speculation ’s executive vice president Lewis Booth and Geely chairman Li Shufu announced at a press conference in Gothenburg, Sweden today that the companies have reached a final deal to sell Volvo to the Chinese carmaker. The deal has gone through at a price of $1.8 billion which includes Volvo’s physical assets as well as some of its intellectual property. Volvo will now become a 100 percent subsidiary of Geely but will continue to supply components during a transition period to support manufacturing and service of Volvo’s range and ensure a smooth transition for owners as well as the company.

Geely’s Li has stated that Volvo would continue its manufacturing in Sweden. Now the deal is only pending regulatory approvals which are expected to come through by the third quarter of 2010.

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