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Volvo, Geely Eye Merger and Dual Listing in Hong Kong, Sweden
ZHANG YUSHUO
DATE : FEB 11 2020/SOURCE : YICAI
Volvo, Geely Eye Merger and Dual Listing in Hong Kong, Sweden
(Yicai Global) Feb. 15 -- Chinese automaker Geely Automobile Holdings and its wholly owned Swedish marque Volvo Cars plan to merge and list in Hong Kong and Sweden.
The firms' management teams are holding preliminary talks to explore the possibility of a re-organization through merger, both companies said in separate statements yesterday. Geely, its sub-brand Lynk, Volvo, and the duo's joint marque Polestar would remain independent brands following a merger, Geely said, adding that the move would form a global group with more cost-effective tech development to tackle future challenges.
The new group would initially seek access from the global capital market in Hong Kong and then look at listing in Sweden, according to the statements, though neither disclosed detailed plans or a specific timetable.
Volvo, a brand highly regarded for its safety, has changed hands multiple times. American auto titan Ford picked the struggling firm up in 1999 and in 2010 sold it on to Geely, who took a 100 percent stake for USD1.8 billion and has been turning the company on its head. The firm made SEK14.3 billion (USD1.5 billion) in profit last year, up 0.8 percent annually, while operating income jumped 8.5 percent to SEK274 billion.
The brand sold 705,000 cars worldwide last year, up 9.8 percent and passing the 700,000 milestone for the first time since it set up shop in 1993 while marking six straight years of record-high sales. Volvo also shifted more than 150,000 cars on the Chinese mainland for the first time, despite an industry-wide slump as the world's largest car market slipped for the second straight year after more than two decades on the up.
The union would be an equal merger, Geely said in a circular to employees. The pair would set up a joint work team coordinated by Volvo Chief Executive Hakan Samuelsson to evaluate the opportunity, propose the merger terms and present it to each company's board for review, it added.
ZHANG YUSHUO
DATE : FEB 11 2020/SOURCE : YICAI
Volvo, Geely Eye Merger and Dual Listing in Hong Kong, Sweden
(Yicai Global) Feb. 15 -- Chinese automaker Geely Automobile Holdings and its wholly owned Swedish marque Volvo Cars plan to merge and list in Hong Kong and Sweden.
The firms' management teams are holding preliminary talks to explore the possibility of a re-organization through merger, both companies said in separate statements yesterday. Geely, its sub-brand Lynk, Volvo, and the duo's joint marque Polestar would remain independent brands following a merger, Geely said, adding that the move would form a global group with more cost-effective tech development to tackle future challenges.
The new group would initially seek access from the global capital market in Hong Kong and then look at listing in Sweden, according to the statements, though neither disclosed detailed plans or a specific timetable.
Volvo, a brand highly regarded for its safety, has changed hands multiple times. American auto titan Ford picked the struggling firm up in 1999 and in 2010 sold it on to Geely, who took a 100 percent stake for USD1.8 billion and has been turning the company on its head. The firm made SEK14.3 billion (USD1.5 billion) in profit last year, up 0.8 percent annually, while operating income jumped 8.5 percent to SEK274 billion.
The brand sold 705,000 cars worldwide last year, up 9.8 percent and passing the 700,000 milestone for the first time since it set up shop in 1993 while marking six straight years of record-high sales. Volvo also shifted more than 150,000 cars on the Chinese mainland for the first time, despite an industry-wide slump as the world's largest car market slipped for the second straight year after more than two decades on the up.
The union would be an equal merger, Geely said in a circular to employees. The pair would set up a joint work team coordinated by Volvo Chief Executive Hakan Samuelsson to evaluate the opportunity, propose the merger terms and present it to each company's board for review, it added.
