Geely to finish Volvo purchase in Q2 2010
Zhejiang Geely Holding Group Co. and Ford Group has reached a framework agreement on the sale of Ford's Volvo Car Corp. After the deal is finished, Geely will establish a Volvo plant in Beijing.
Geely and Volvo will sign the definitive agreement in the first quarter of 2010. After getting government approval, the deal is expected to be completed in the second quarter, said the two companies in their statements.
Geely doesn't provide any details about financing or the price for Geely. Shanghai Security News cited an unnamed source that Geely offered no more than 1.9 billion U.S. dollars for Volvo, less than one-third what Ford paid for Volvo in 1999.
Geely, who was seeking financing channels months ago, has raised enough money for the Volvo deal. Geely is planning to build a Volvo factory in Beijing. Beijing Municipal Government will also invest in the new plant, said today's Shanghai Security News.
