China’s Geely completes $1.8-bn acquisition of Ford’s Volvo Cars
02 Aug 2010
China's largest independent carmakers, Zhejiang Geely Holding Company today completed the $1.8 billion acquisition of Ford Motors Swedish car brand Volvo Cars in the biggest overseas acquisition by a Chinese automaker.
Under the deal that was signed in March 2010, (See: Ford to sell Volvo to China's Geely for $1.8 billion) Hangzhou-based Geely today paid $1.3 billion in cash and issued a $200 million note for the Volvo Cars acquisition, and the remaining $300 million will be determined later this year when the final adjustments on Volvo's value are made, the Dearborn, Michigan-based Ford said in a statement.
Stefan Jacoby, the former head of Volkswagen US, will succeed Stephen Odell as Volvo's CEO, while Hans Oskarsson will replace Stuart Rowley as interim chief financial officer of the company, Geely said in a separate statement.
Stephen Odell will become chairman and CEO of Ford of Europe, while Stuart Rowley will become the chief financial officer.
Hans-Olov Olsson, Volvo's former president and CEO will be on the board of the company that will be chaired by Geely's chairman Li Shufu.
Under the proposed change of ownership, Volvo Cars will remain headquartered in Gothenburg, Sweden, with management autonomy to execute on its business plan.
As part of that business plan, Volvo Cars aims to strengthen its presence in Europe and North America, while exploiting new growth opportunities in China. The company also plans to extend its industry-leading position in the fields of vehicle safety, fuel efficiency and environmental technology, said Geely.
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