- July 21, 2021
- Posted by: Stratford Team
- Category: Business
STOCKHOLM, July 21 (Reuters) – Volvo Car Group has struck a deal to buy out parent company Geely Holding from their joint ventures in China, in a move that could make a potential initial public offering (IPO) for the Swedish automaker more attractive to investors.
Geely said earlier this year it was considering options for Volvo, including an IPO and stock market listing. read more
“These two transactions will create a clearer ownership structure within both Volvo Cars and Geely Holding,” Geely Holding CEO Daniel Donghui Li said in a statement, which did not refer to the possible IPO.
Analysts expect other foreign automakers to strike similar deals in China, the world’s biggest car market, when the country’s requirement for auto manufacturing to be carried out with a local joint venture partner is lifted next year.
Volvo’s deal, financial terms for which were not disclosed, will give it full ownership of its manufacturing plants in Chengdu and Daqing,…