Chinese car maker Zheijiang Geely Holding Group is a step closer to becoming the new owner of Swedish firm Volvo Cars after announcing that it had secured the 15 billion kronor ($2.1 billion) in required financing, a report said on Wednesday.
- Volvo optimistic as losses mount (5 Feb 10)
- ‘Volvo production to remain in Sweden’: Geely (1 Feb 10)
- Geely to make 300,000 Volvos a year in China (26 Jan 10)
“Financing for the Volvo deal was concluded in recent days,” a source told
Swedish financial daily Dagens Industri (DI).
The funds are now in Geely’s bank account, and Ford has witnessed and approved documentation, according to DI’s source.
It could still take time for the deal to be finalised as the parties need to go over all the relevant documents and make sure they are in line with legislation in China, Sweden and the United States, DI said.
“This is a very complex and time-consuming process,” DI’s source said, adding that approvals were still needed from some of the relevant authorities.
The backers of the deal are reported to be Chinese financial institutions and regional authorities which have secured the financially strained Chinese firm’s purchase of Volvo Cars.
Ford announced in late 2009 it had agreed terms to sell its Swedish subsidiary Volvo Cars to Geely for a reported $2 billion.
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