Geely's Volvo deal approved
By Jin Jing |
July 30, 2010, Friday
|
Print Edition
Print Edition
ZHEJIANG Geely Holding Group's purchase of Volvo Car Corp has been approved by the Chinese government, clearing the way for the completion of the deal that was clinched in March.
The Ministry of Commerce officially gave the approval on Monday, a spokeswoman surnamed Gao for the ministry told Shanghai Daily yesterday.
The National Development and Reform Commission has also approved Geely's US$1.8 billion acquisition of the Swedish car maker from Ford Motor Co, Geely spokesman Ning Shuyong confirmed yesterday.
"We are working hard to complete the deal," Ning added.
The deal, expected to be completed in the third quarter, won European antitrust approval in early July.
"It's no surprise the deal was approved as it had the support of the central government at an early stage," said John Zeng, an analyst from automotive consulting firm Global Insight in Shanghai.
"Volvo is a leading brand for energy efficiency and safety worldwide. The deal fully meets China's industrial policy to encourage eco-friendly vehicles and boost Geely's self-branded cars."
Chinese media reported that both companies plan to complete the deal on August 2, citing people close to the deal.
Once completed, it will become the biggest overseas acquisition by a Chinese auto maker. It will give Geely control of a global brand and access to advanced technologies.
Geely, the biggest privately owned Chinese auto producer, has been contacting local governments in Beijing, Chongqing, Shanxi and Shanghai about producing Volvo cars locally.
In July, Geely reportedly signed a framework deal with the government of Shanghai's Jiading District to build a Volvo plant in Anting Town, where it will also likely set up Volvo's Chinese headquarters and an engineering center.
Geely earlier said it aims to keep Volvo's existing manufacturing facilities in Sweden and Belgium, but will also explore production opportunities in China, a key move to spur domestic demand and drive Volvo's global sales to 1 million units within four to five years.
At the end of June, Geely appointed its chairman Li Shufu as global chairman of Volvo Car Corp while Stefan Jacoby was named the new chief executive officer.
The Ministry of Commerce officially gave the approval on Monday, a spokeswoman surnamed Gao for the ministry told Shanghai Daily yesterday.
The National Development and Reform Commission has also approved Geely's US$1.8 billion acquisition of the Swedish car maker from Ford Motor Co, Geely spokesman Ning Shuyong confirmed yesterday.
"We are working hard to complete the deal," Ning added.
The deal, expected to be completed in the third quarter, won European antitrust approval in early July.
"It's no surprise the deal was approved as it had the support of the central government at an early stage," said John Zeng, an analyst from automotive consulting firm Global Insight in Shanghai.
"Volvo is a leading brand for energy efficiency and safety worldwide. The deal fully meets China's industrial policy to encourage eco-friendly vehicles and boost Geely's self-branded cars."
Chinese media reported that both companies plan to complete the deal on August 2, citing people close to the deal.
Once completed, it will become the biggest overseas acquisition by a Chinese auto maker. It will give Geely control of a global brand and access to advanced technologies.
Geely, the biggest privately owned Chinese auto producer, has been contacting local governments in Beijing, Chongqing, Shanxi and Shanghai about producing Volvo cars locally.
In July, Geely reportedly signed a framework deal with the government of Shanghai's Jiading District to build a Volvo plant in Anting Town, where it will also likely set up Volvo's Chinese headquarters and an engineering center.
Geely earlier said it aims to keep Volvo's existing manufacturing facilities in Sweden and Belgium, but will also explore production opportunities in China, a key move to spur domestic demand and drive Volvo's global sales to 1 million units within four to five years.
At the end of June, Geely appointed its chairman Li Shufu as global chairman of Volvo Car Corp while Stefan Jacoby was named the new chief executive officer.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
