…Targets Automotive Industry Transformation
Volvo Car AB and Geely Automobile Holdings Limited (Hong Kong 0175) are considering combining their businesses to create a strong global group, which would accelerate financial and technological synergies between the two companies. This would be a combination between two strong companies.
[dropcap]T[/dropcap]he considered combination would have the scale, knowledge and resources to be a leader in the ongoing transformation of the automotive industry. The combination would preserve the distinct identity of each of the brands Volvo, Geely, Lynk & Co and Polestar.
A combined company would have access to the global capital market through Hong Kong and with the intention to subsequently list in Stockholm as well.
Volvo Cars and Geely will create a joint working group to prepare a proposal to their respective boards.
“A combination of the two companies would result in a strong global group. We look forward to working with Håkan Samuelsson, president and CEO of Volvo Cars, to further investigate this opportunity with the goal to strengthen the synergies within the Group while maintaining the competitive advantage and the integrity of each individual brand,” said Li Shufu, Chairman of Geely Holding Group.
A transaction would be carried out in compliance with the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and be subject to mutually agreed terms and conditions, approvals of the respective boards and shareholders of Geely and Volvo Cars, regulatory approvals and prevailing market conditions.
For the 2019 financial year, Volvo Car Group recorded an operating profit of 14.3 BSEK (14.2 BSEK in 2018). Revenue over the period amounted to 274.1 BSEK (252.7 BSEK). For the full year 2019, global sales reached a record 705,452 (642,253) cars, an increase of 9.8 per cent versus 2018. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
Volvo Cars was founded in 1927. Today, it is one of the most well-known and respected premium car brands in the world with sales of 705,452 cars in 2019 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding of China since 2010.