nsucurrent.com
nsucurrent.com April 21, 2018


China's billionaire Li Shufu turns gaze on Volvo trucks after cars

29 December 2017, 01:04 | Ruby West

China's Geely adds to Swedish assets by taking major stake in truck-maker Volvo

VolvoFH2

They did not disclose the value of the transaction, which makes Geely Volvo's largest owner by capital and the second biggest by voting rights after investment firm Industrivarden. The auto business made an operating profit of 10.4 billion Swedish crowns in the first nine months this year, up from 1.6 billion for the whole of 2011, the year after Geely bought Volvo from Ford.

Geely Holding acquired the Volvo Car Group from Ford Motor Company in 2010 but says it has no plans to merge the two Volvo businesses, but sees potential for joint marketing. Reuters reports that Volvo Cars brought in $1.26 billion in the first three quarters of 2017, compared to just $193 million in 2011, the first full year of Geely's ownership.

AB Volvo owns 45 percent of Dongfeng Commercial Vehicles, one of China's largest truck makers, and also has a significant construction equipment business in China.

Li said Geely would support Volvo management's current strategy.

Shares of its Hong Kong-listed subsidiary Geely Automobile Holdings gained 0.6 per cent to HK$25.8 (US$3.30) on Wednesday, jumping 254 per cent from the close of previous year.




The value of the transaction was not revealed.

According to the news feature, this would make the deal the most lucrative exit ever by an activist, according to Nomura, topping the €2.7 billion (Rs 20,638 crore) Icahn Enterprises made a year ago when selling American Railcar Leasing.

In the latest deal, Geely will acquire 88.5 million A shares and 78.8 million B shares to give it 15.6 percent of Volvo voting rights.

This June, Geely bought a 49.9% stake in Malaysia's Proton Holdings, as well as a 51% stake in British automaker Lotus. Industrivarden owns mostly A shares and controls 22.8 percent of the votes.

Christer Gardell, Cevian's co-founder, said the activist was happy to have helped the Volvo Group become a more competitive and valuable company.



Other News

Trending Now

Exhausted of your Facebook friends' constant updates? Send them for a snooze
Muraleedharan wrote "it turned out, you're not alone" if you think you are inundated with content you don't want to see. Facebook is now rolling out a new feature called Snooze to all users after going through a testing period in September.

Move Over, Boys: First Official Trailer For 'Ocean's 8' Is Fierce AF
Like its male-centric predecessors, Ocean's 8 revolves around an intricate, yet flashy, heist. Ocean's 8 director is Gary Ross , best known for The Hunger Games and Seabiscuit .

Royal interview: Prince Harry and Barack Obama rekindle bromance
A segment of their chat will be broadcast on BBC Radio 4 on December 27th, and the full interview will go up later as a podcast. In a sneak preview uploaded earlier today (December 17), the former U.S.

Police in NY respond to report of explosion
It was just a lot of chaos but I didn't see any injuries". - Cuomo said it was an amateur, "effectively low-tech device". Four people were injured, including the suspect, 27-year-old Akayed Ullah , according to the New York Fire Department.

Pence postpones trip to Mideast, citing vote on tax bill
However, Pence's office confirmed on Monday that his visit would be pushed back again until January 2018, Politico reported . The leader of Egypt's Coptic Church had already cancelled his meeting with Pence to protest the United States move.

CHP Officer Died When Struck By Drunken Driver
The driver, a Hayward resident, was allegedly driving under the influence of alcohol and drugs, most likely marijuana. Velasquez, who was sitting in the driver's seat, was injured and later released from the hospital.

Tunisia bans UAE Emirates airline from landing in Tunis
Another female would-be passenger said men and male children were allowed to board flights - but not women under 30. The Emirates released a statement the same day that said the visas were restricted for the Tunisians.

Dem senator compares CDC word ban to '1984'
According to CNN , "Health and Human Services spokesman Matt Lloyd disputed the report in a statement to CNN ". The instructions even included alternative phrases in some instances.

Klopp Talk: We Could've Scored More
Klopp made three change from the side that drew 0-0 with West Brom earlier this week. We have so many things to play for.

Trump Loses Most Admired Man Title to Predecessor
Billy Graham, John McCain, Elon Musk, Bernie Sanders, Bill Gates, Benjamin Netanyahu, Jeff Bezos, The Dalai Lama, and Mike Pence. "Obama has now been named the most admired man 10 times, trailing only Dwight Eisenhower, who earned the distinction 12 times".