Geely, Ford close in on Volvo sale: source

• Source: Global Times
• [15:34 December 23 2009]
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By Shi Jierui

Geely Automotive will sign a deal with Ford Motor to buy the Volvo unit soon, a source familiar with the negotiations told the Global Times when contacted by telephone.

An earlier article by Reuters said the two companies are set to report progress as soon as Wednesday, citing two people with direct knowledge of the matter.

Sources close to the negotiations said that while a final deal has yet to be settled, the two sides were close to an agreement on some key aspects. However, issues such as the protection of intellectual property rights and the future of Volvo’s plants in Sweden and Belgium were still being negotiated.

In October Ford selected Geely as the preferred bidder for its loss-making Swedish unit Volvo in a deal estimated to be worth about $1.8 billion. Geely, China's largest private carmaker and producer of such mass market models as the Geely Kingkong, is seeking at least $1 billion in loans from Chinese banks to finance the acquisition.