Volvo Cars, Geely Automobile Mull Merger and Stockholm Listing

By Dominic Chopping

STOCKHOLM--Volvo Cars and Hong-Kong-listed Geely Automobile Holdings Ltd. (0175.HK) are exploring a potential combination of their businesses to speed up synergies and boost capital market access through a joint Hong Kong and Stockholm listing.

Both companies are owned by China's privately-held Zhejiang Geely Holding Group Co.

In a statement Monday, Volvo said a tie-up with Geely Automobile would provide the scale, knowledge and resources to lead the continuing transformation of the automotive industry. It would have access to the global capital market through Hong Kong and the intention would be to subsequently list in Stockholm as well, Volvo added.

"We look forward to working with Hakan Samuelsson, president and CEO of Volvo Cars, to further investigate this opportunity with the goal to strengthen the synergies within the group while maintaining the competitive advantage and the integrity of each individual brand," said Li Shufu, Chairman of Geely Holding Group.

Volvo Cars and Geely will now create a joint working group to prepare a proposal to their respective boards.

In addition to Volvo and Geely, Geely Holding Group counts Proton and Lotus, as well as Lynk & Co. and Polestar among its stable of brands.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

February 10, 2020 07:36 ET (12:36 GMT)

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