Geely Holdings, the parent company of Volvo Cars, has just made a large investment in Volvo Trucks.
The deal is worth more than $4.24 billion AUD and will see the Chinese auto giants’ walkaway with an 8.2% stake in the Swedish heavy vehicle manufacturer.
Selling the stake in the company was Cevian Capital – an investor group.
So, will this mean a reuniting of the truck and construction vehicle arm of Volvo with Volvo Automobiles? No, according to reports.
The two divisions have been separated for nearly two decades and Geely say they have no intention of trying to reunite the two businesses.
The deal will make Geely the largest individual shareholder in AB Volvo.
“Given our experience with Volvo Car Group, we recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo,” Geely Chairman Li Shufu said in a statement as the deal was announced.
The move comes after AB Volvo has made large strides in China in the recent times.
The truck brand owns 45% of Dongfeng Commercial Vehicles, one of China’s largest truck manufacturers, as well as a significant construction equipment business.
We will bring you further info on the deal as additional details come to hand.
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