Geely Automobile December 23 announced that it has with the Ford Motor Company Volvo Car Corporation to acquire all the essential business terms agreed to sign next year a quarter stake in the acquisition agreement, two quarter to complete the transaction. Ford Motor Co. issued a statement on the same day, confirmed the two sides have reached a sale of the company's Volvo sector agreements.
In the second quarter of next year to complete the transaction
Geely said that in the commercial terms on which consensus has been reached, since in October this year, Geely became the preferred bidder Volvo and Ford since the results of an in-depth discussions. It is expected that the two sides will sign the first quarter of 2010, stock purchase agreement; in access to relevant regulatory approval, is expected to complete the transaction in the second quarter. Ford pointed out that trade is not yet over, both sides will be a further focus on the legal texts and the finalization of the financing and government approval, and other issues for further discussion.
Meanwhile, Geely and Volvo management, union representatives, as well as Volvo's main plant location - the Swedish and Belgian government officials carried out a series of constructive meetings. "Geely will work with all stakeholders to work together to complete a transaction the best interests of all parties." Zhejiang Geely Holding Group Chairman Li Shufu said.
"The deal with Geely Automobile, Volvo will be able to make capital investments to ensure the necessary resources so as to further consolidate its operations and build a global business network. The sale of Ford's Volvo also adhere to and implement the 1 Ford's strategy to focus on the Ford brand. "Ford in the official statement that the completion of the transaction want to continue to maintain cooperation with the Volvo, but Ford will no longer hold their shares.
However, sources said, the future of Volvo will be an independent management team, but the headquarters will remain based in Gothenburg, Sweden, the purchase price is 20 billion U.S. dollars. Nevertheless, informed sources pointed out that in the real after the completion of the acquisition, access to multi-party support for the Volvo unlucky or it would have to move to China. It is reported that Geely has already planned Yizhuang Economic and Technological Development Zone in Beijing, the purchase of land to serve as the construction of the production Volvo car factory, and the project jointly invested by the Beijing Municipal Government and the Geely 1.9 billion.
Changan Ford will decompose Volvo
In accord with this is that Volvo is currently director of Chan An Ford's joint venture in China will face a break. It is understood that, starting in 2006, Ford's Volvo brand would be the introduction of Changan Ford Mazda in order to achieve the transfer of technology in the form of domestic, respectively, in 2006 and 2009 have put in a S40 and S80L. According to Changan, Ford and Volvo three original contract, the contract period of up to 10 years. In other words, by 2016, Changan Ford Mazda plant in Chongqing will continue to produce Volvo S40 sedan, 2019 years ago, will continue to produce Volvo S80 sedan. Insiders pointed out that in the formal acquisition, Geely should be by mutual agreement, reasonable compensation, etc. in advance with the Changan Ford dissociate itself from.
Geely and Ford are not currently on the description and evaluation of these issues. However, the head of Changan Automobile said recently that the cooperation agreed in the contract period, Volvo domestic production, sales, service, brand and patent rights and so on, will continue to be protected, and Volvo will continue to invest in The new models, Changan, Ford and Volvo tripartite relations and production plans are not affected.
No matter how the follow-up, analysts believe that, if eventually signed a share purchase agreement, as the world-renowned high-end automobile brand, Volvo safety and environmental technology will continue to lead the world in automotive technology trends, and in the fast-growing China markets a unique competitive position.
