Zhejiang Geely Completes Acquisition Of Ford's Volvo Car Corp - Quick Facts
(RTTNews) - Chinese carmaker Zhejiang Geely Holding Group Co., Ltd. Monday said it has completed the acquisition of Volvo Car Corp. from Ford Motor Co. (F) for US$1.8 billion.
The company also said Stefan Jacoby, the Chief Executive of Volkswagen Group of America, would become President and Chief Executive Officer of Volvo Cars, while Hans-Oskarsson, deputy Chief Financial Officer, will become acting CFO of Volvo Cars, replacing Stuart Rowley.
Following completion of the deal, Jacoby will join the board of Volvo Cars, chaired by Li Shufu, Chairman of Geely Holding Group. The board will comprise several new directors including Hans-Olov Olsson, a former President and Chief Executive of Volvo Cars and a former Chief Marketing Officer of Ford, who will become Vice-Chairman of the board.
As announced on the signing of the stock purchase agreement on March 28, the deal value included a US$200 million note with the balance paid in cash. Geely today said it issued the note and paid US$1.3 billion in cash for Volvo Cars, utilising financing from Chinese institutions and its own balance sheet as well as international capital market resources. The closing consideration reflects adjustments in areas such as pension obligations and working capital.
Under the new ownership, Volvo Cars will retain its headquarters and manufacturing presence in Sweden and Belgium. As part of the deal, Volvo and Ford will maintain close component and supply relationships, ensuring continuity in areas where they provide supply to each other, said Geely.
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