Geely buys Volvo

The Chinese company Geely Automotive has signed a preliminary agreement to buy Volvo brand with Ford concern. Chinadaily.com reported this information with reference to the local edition of National Business Daily.

Official representatives of parties have not yet commented on a transaction of this information. According to Chinese media, after the purchase Geely plans to expand the production of Volvo cars in China. In particular, the company will build a factory in the city of Dongguan, Guangzhou Province, for the production of crossovers Volvo XC90, which are now collected in the United States.

The deal between Geely and Ford has not yet been disclosed, but according to experts, the American group is unlikely to sell Volvo brand for less than three billion U.S. dollars.

Previously, it was reported that China may soon buy another well-known global brand – GM Concern agreed to sell the Hummer brand of Sichuan Tengzhong Heavy Industrial Machinery for U.S. $ 500 million. This transaction is expected to be completed by autumn this year. However, for the purchase of an American manufacturer of SUVs, Sichuan Tengzhong must obtain approval of the Chinese Government, which could veto any foreign investment in excess of the amount of 100 million U.S. dollars.