"Geely has made adequate preparations in terms of funding, and has the strong support of the banks,"said Geely's spokesman Yuan Xiaolin at a media briefing.

Yuan declined to name any banks or details on funding for the deal.

Asked whether Geely has the Chinese government's approval for its bid for Volvo, Geely's vice president Wang Ziliang said without government support Geely would never have become what it is today. "Regarding our overseas development strategy, we have also received support from the state," he added.

Yuan confirmed that Geely's top management including its president Li Shufu held talks in mid-November in Sweden with several Volvo stakeholders. These included Volvo's management team, the governments of Sweden and Belgium where Volvo has plants, and labor unions representing Volvo's workers in both countries.

All these talks were "frank and fruitful," he said. He stopped short of providing further details on the talks.