Geely Shares Surge 6% Amid Merger Talks With Volve Cars

This post was originally published on this site
© Reuters. © Reuters.

By Alex Ho – Hong Kong-listed Geely Automobile Holdings Ltd (HK:) is in talks with Volvo Cars to plan a merger and listing, according to a proposal announced on late Monday.

The two companies are in preliminary discussions regarding “a possible restructuring through a combination of the businesses of the two companies into a strong global group,” Geely said in the statement.

Volvo was seeking a valuation of up to $30 billion during its IPO preparation two years ago, but abandoned the plan against a backdrop of growing consolidation in the car industry.

Li Shufu, chairman of both Geely and Volvo, said on Monday that any deal would “accelerate financial and technological synergies” between the companies.

“A combination of the two companies would result in a strong global group,” said Li.

The combined company would be listed in Hong Kong and could seek a secondary listing in Stockholm, Volvo said.

Geely’s shares in Hong Kong jumped 6.1% to HK$14.54 in morning trade on Tuesday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment