China’s Geely Holding, owner of the Volvo car brand, is buying an 8.2 percent stake in Swedish truckmaker AB Volvo from activist investor Cevian Capital.
Swedish daily Dagens Nyheter said Geely paid 3.25 billion euro ($3.86 billion) for the stake, citing a source with knowledge of the deal. Geely and Cevian declined to disclose the exact value of the transaction.
“Given our experience with Volvo Car Group, we recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo,” Geely Holding Chairman Li Shufu said.
When it acquired Volvo Cars from Ford in 2010 it became the first Chinese car manufacturer to take over a foreign competitor. This was just the start, and the company has gone on to acquire various other overseas assets and technology.
It rescued the London Taxi Company’s assets from administration in 2012, later renaming the revived business London Electric Vehicle Company (LEVC). It also took a 49.9% stake in Proton and a 51% stake in Lotus and fully acquired US flying car start-up Terrafugia.