The ambitions of China’s Zhejiang Geely Holding Group to acquire a small stake in Daimler was turned down last month. But the Chinese major wanted a pie in the growing truck segment. Now Geely, which owns Volvo Car Group, will buy 8.2% stake in Swedish truck maker AB Volvo from Cevian Capital for about $3.3 billion. Following the acquisition, it will be Volvo’s largest owner by capital and the second biggest by voting rights.
“We are delighted to have reached an agreement with Cevian to acquire its holding in AB Volvo, making us the largest shareholder by capital in a company that leads the world in many aspects of commercial vehicle development, manufacturing and sales. We will support the Board of Directors and the management of AB Volvo in their continued execution of the current strategy,” said Geely Chairman Li Shufu.
AB Volvo owns 45% of Dongfeng Commercial Vehicles, one of China’s largest truck makers, and also has a significant construction equipment business in China.
Nomura International Plc and Barclays Capital Securities will acquire Cevian’s shares in Volvo and will sell them to Geely when the necessary regulatory approvals are obtained.