Eyeing IPO, Volvo Cars to take full control of its Chinese business
- Volvo Cars to buy out parent Geely from Chinese JVs
- Two step deal seen formally completed in 2023
- Geely considering options for Volvo Cars, including IPO
STOCKHOLM/BEIJING, July 21 (Reuters) – Volvo Cars has struck a deal to buy out parent company Zhejiang Geely Holding (GEELY.UL) from their joint ventures in China, in a move that could make a potential initial public offering (IPO) for the Swedish automaker more attractive to investors.
Hangzhou-based Geely, which also owns a 9.7% stake in Daimler (DAIGn.DE), said earlier this year it was considering options for Volvo, including an IPO and stock market listing. In February, Geely’s Hong Kong-listed unit Geely Automobile (0175.HK) and Volvo Cars scrapped plans to merge. read more
Handelsbanken Capital Markets analyst Hampus Engellau said taking full control of the Chinese joint ventures could help smooth the way for a Volvo Cars IPO.
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