Geely and Volvo Cars consider merger and listing

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The enlarged company will be listed in Stockholm and Hong Kong

Global deal making has picked up in the past year as Volkswagen and Ford agreed to co-operate and Fiat Chrysler is to merge with PSAStockholm/Beijing — Volvo Cars owner Li Shufu on Monday set out to combine the Swedish carmaker he bought in 2010 with his Hong Kong-listed automobile unit to create a company with the scale to compete in a rapidly consolidating global market.

Global deal making has picked up in the past year as Volkswagen and Ford agreed to co-operate and Fiat Chrysler Automobiles is to merge with France’s PSA Group, owner of the Peugeot brand.A joint listing with Geely Automobile would mark a creative way to list Volvo Cars, which delayed plans for an IPO in 2018, citing the impact of trade tensions on market appetite.

Volvo was started in 1926 as a project within ballbearing maker SKF, which wanted to show how useful its products could be in cars. The fledgling company was listed in Stockholm in 1935 before expanding to become a sprawling conglomerate that also made trucks and construction equipment, with stakes in pharmaceutical companies and breweries.

 

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