Deal for London taxi maker Manganese gives Geely bigger European presence
Zhejiang Geely Holding Group Co. says it has acquired the remaining stake in London taxi maker Manganese Bronze Holding for 11 million pounds (108 million yuan).
The deal ensures continuous production and sales of the London taxi, a vintage British brand, Geely said in a statement.
Under the agreement with PricewaterhouseCoopers, Manganese Bronze's administrator, Geely obtains all assets owned by the British company, including plants, equipment and intellectual property rights.
In turn, Geely pledged to retain as many employees as possible.
Prior to the deal, Geely already owned a 20 percent stake in the British company.
Manganese Bronze assembles the London TX4 taxi in Coventry, England. It also has a joint venture with Geely in Shanghai, which assembles the TX4 for the Chinese market and supplies components to the Coventry plant.
Unable to secure external funding late last year, Manganese Bronze hired PricewaterhouseCoopers as its administrator to prepare it for bankruptcy.
The purchase will help Zhejiang Geely, the privately held automaker based in Hangzhou in eastern China, to expand into overseas markets following the purchase of Volvo Cars in Sweden.
Daniel Li, chairman of Geely UK, told the Financial Times that Manganese Bronze would help Geely sell cars in Europe. The acquisition would give the Chinese automaker "a solid foundation, not only for its location but also the dealer network."
According to the Times, Li said the Coventry plant "could get even bigger," and that Geely would spend 30 to 50 million pounds over the next five years to produce new models there.
Under the agreement with PricewaterhouseCoopers, Manganese Bronze's administrator, Geely obtains all assets owned by the British company, including plants, equipment and intellectual property rights.
In turn, Geely pledged to retain as many employees as possible.
Prior to the deal, Geely already owned a 20 percent stake in the British company.
Manganese Bronze assembles the London TX4 taxi in Coventry, England. It also has a joint venture with Geely in Shanghai, which assembles the TX4 for the Chinese market and supplies components to the Coventry plant.
Unable to secure external funding late last year, Manganese Bronze hired PricewaterhouseCoopers as its administrator to prepare it for bankruptcy.
The purchase will help Zhejiang Geely, the privately held automaker based in Hangzhou in eastern China, to expand into overseas markets following the purchase of Volvo Cars in Sweden.
Daniel Li, chairman of Geely UK, told the Financial Times that Manganese Bronze would help Geely sell cars in Europe. The acquisition would give the Chinese automaker "a solid foundation, not only for its location but also the dealer network."
According to the Times, Li said the Coventry plant "could get even bigger," and that Geely would spend 30 to 50 million pounds over the next five years to produce new models there.
