According to the announcement, Geely and Volvo are discussing restructuring through the business combination of the two companies. The combined business will be listed in Hong Kong and Stockholm, while existing brands such as Geely and Volvo will remain independent.
The announcement issued by Geely Automobile shows that the main purpose of the merger of the two companies is to form a powerful enterprise group with global competitiveness and join hands to meet the challenges of the future international market. In particular, the application of 5G technology, a strong and United enterprise group, is more conducive to leading the development of the automobile market in the professional field and the direction of industry reform.
The merger of Volvo and Geely Automobile will form synergies in technology research and development, cost control and finance in the future. Through business restructuring, both parties will also be more competitive in the market. At the same time, Volvo also said that the fundamental purpose of the merger of new business groups is to invest, reduce costs and raise funds, and the recognition of the capital market through merger is the core. After the reorganization, the new business group will connect with the global capital market through the listed entity of Hong Kong Geely Automobile, and the next step will be to consider listing in Stockholm.
It is reported that at present, Volvo Cars and Geely Automobile will set up a joint working group to form a plan for restructuring and report to the boards of directors of both parties. Hanken Samuelson, President and CEO of Volvo Car Group, is responsible for leading the coordination working group to evaluate restructuring opportunities.
If Geely Automobile and Volvo can reach an agreement on the reorganization agreement, the two parties will report the merger and reorganization to their respective boards of directors and shareholders for approval. After being approved by the regulatory authorities, the next step will be trading and listing according to the market conditions at that time and the relevant regulations of the Hong Kong Stock Exchange.
As the merger is still in the preparatory stage, there is no accurate information about the leadership structure at present. However, according to the management structure of both parties, the management of the group after the merger of Geely and Volvo will be jointly managed by the management committee established by both parties, among which senior executives of Geely and Volvo such as Li Shufu, An Conghui, Hanken Samuelson, Li Donghui and Yuan Xiaolin will become the core management team members.
In the global automobile market competition, neither the sales volume of Volvo cars nor the market competitiveness of Geely cars can face the competition of strategic transformation of global automobile companies alone, so in such a market environment, the merger of Geely and Volvo is just the right time. Through mergers and acquisitions, the two sides can unify their resource advantages, technological advantages, talent strategies and market strategies, and can launch effective market expansion strategies for global market competition.
2020 is the anniversary of Geely Automobile's acquisition of Volvo Car 10. In the development course of this 10 anniversary, Volvo Cars has owned three automobile factories, 1 engine factory, 1 R&D center and 1 design center in China, which has achieved the high efficiency of the three R&D centers in the world. In 20 19, Volvo's global market sales exceeded 700,000 vehicles, and its products accounted for more than 50% in developed markets in Europe and America.
In 20 19, Geely Automobile sold13.62 million vehicles throughout the year, becoming the sales champion of automobile brands in China, and its market share increased steadily. After the merger with Volvo, a series of brands under Geely Holding Group, such as Geely, Volvo, Polaris, Proton, Lotus and smart, will still operate independently.
At present, the merger of Geely and Volvo Cars may be just the beginning of a collectivization. Geely Automobile is accelerating the global market layout of the automobile industry through global cooperation, accelerating the structural upgrading and internal and external structural adjustment of the automobile industry, and accelerating the strategic competition of the world's top automobile companies through more extensive cooperation. Realizing the merger and reorganization of Geely and Volvo, or forming a powerful global automobile business group, will have more advantages in the face of future market competition.
Attachment: Geely Automobile Memorabilia
20 10 On March 28th, Geely and Ford Motor Company signed the final equity purchase agreement, and acquired 0/00% equity of Volvo Car Company/kloc-0 and related assets. The acquisition involves1800 million USD.
20 12 On March 9th, Geely Automobile and Volvo Automobile reached an agreement on technology transfer from Volvo Automobile Company to Geely Holding Group. 20 12, Zhejiang Geely Holding Group entered the Fortune Global 500.
On February 25th, 20 13, Geely Automobile Europe Research Center was established in Gothenburg to develop the modular architecture and key components of the next generation medium-sized car.
On April 9, 20 15, Geely Borui went public. In 20 16, with the listing of job, emgrand GS and emgrand GL, Geely automobile officially entered the "boutique 3.0 era".
2016101On October 24th, Geely Automobile Group released Lynk & CO is brand-new, adopting modular development concept and design language, bringing brand-new business model.
2065438+On August 4th, 2007, Zhejiang Geely Holding Group and Volvo Car Group jointly established Geely-Volvo and Link Auto. In June, it acquired Proton Auto and Lotus shares.
2065438+0717 On February 27th, Geely Holding reached an agreement with Cevian, a European fund company, to acquire its Volvo Group (AB? Volvo) 8.847 billion A shares and 78.77 million B shares acquired 8.2% of Volvo shares and became the largest shareholder.
On February 24th, 20 18, Geely Group Co., Ltd. announced the acquisition of 9.69% of the voting shares of Daimler AG through its overseas enterprise entities.
20 19 10 7. Geely Holding officially announced that it is discussing the possibility of merging its engine business with Volvo Cars. (Text/Wang Yi)
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.