Volvo Cars and owner Geely consider merger deal

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Swedish automaker Volvo Cars and its owner Chinese automaker Geely Holding said Monday they are considering combining their businesses to create what they called 'a strong global group' that 'would accelerate financial and technological synergies between the two companies.'

The Volvo logo on the front grille is shown in Miami, Tuesday, July 21, 2009. COPENHAGEN -- Swedish automaker Volvo Cars and its owner Chinese automaker Geely Holding said Monday they are considering combining their businesses to create what they called "a strong global group" that "would accelerate financial and technological synergies between the two companies."

In a joint statement, they said a combined group "would have the scale, knowledge and resources to be a leader in the ongoing transformation of the automotive industry." It added that it would be listed on the Hong Kong Stock Exchange "and with the intention to subsequently list in Stockholm as well."

Volvo Cars is based in Goteborg, Sweden, but has been owned by China's Geely holding company since 2010.

 

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