STOCKHOLM, Sweden – China-based Geely Holding has purchased Cevian Capital’s stake in AB Volvo, becoming the largest shareholder by capital in the global truck maker.
Cevian Capital’s co-founder, Christer Gardell, said: “Today’s announcement concludes over 11 years’ ownership in AB Volvo by Cevian Capital. During Cevian Capital’s ownership, AB Volvo has been transformed into a more competitive and valuable company, through strengthened governance, improved efficiency and increased focus on its core business. This is reflected in structurally improved profitability and a higher market value. We are proud to have played a role in this positive development.”
Geely Holding Chairman Li Shufu added: “We are delighted to have reached agreement with Cevian to acquire its holding in AB Volvo, making us the largest shareholder by capital in a company that leads the world in many aspects of commercial vehicle development, manufacturing and sales. 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. We will support the Board of Directors and the management of AB Volvo in their continued execution of the current strategy.”
Daniel Donghui Li, executive vice-president and chief financial officer of Geely Holding, added: “Geely Holding will be able to contribute its global knowledge, Chinese market expertise and leading research and development capabilities especially in the fields of electrification, autonomous driving and connectivity, to AB Volvo to further its global development, and strengthen the Volvo brand.”