Chinese govt supports Geely bid to buy Volvo

• Source: Global Times
• [18:19 December 17 2009]
• Comments

The Ministry of Commerce of China said that the ministry will offer international legal and advisory services to help Geely successfully acquire Volvo.

Ministry spokesman Yao Jian made the statement at a press conference Thursday.

He said if Geely buys Volvo, China's foreign exchange reserves could be used, and the experience of acquiring international brands could be improved, as well as acquire technologies and brands overseas.

Chinese automakers need learn advanced technology and management from abroad to improve, while the domestic auto market is growing rapidly, Yao said. It will be a trend for domestic auto manufacturers to invest more in foreign brands.

Geely aims to conclude the acquisition for Ford Motor's Volvo in early 2010 and has hired consultants for restructuring and integration, according to Reuters, citing sources with direct knowledge of the deal.

Agencies and Shi Jierui contributed to this story