Volvo deal on track for next week: Geely

• Source: Global Times
• [01:07 March 24 2010]
• Comments

Chinese automaker Zhejiang Geely Holding Group said Tuesday its talks to buy Ford Motor's Volvo car unit were on track and it expected to sign an agreement in about a week.

Media reports had suggested that Zhejiang Geely, China's largest private carmaker and the parent of Hong Kong-listed Geely Automobile, faced financial and technical problems that could delay the transaction, worth up to $2 billion.

"It's a complicated deal and any twists and turns are normal," said Yuan Xiaolin, who is in charge of the Volvo deal.

The talks are moving ahead as planned and Ford and Geely plan to sign a sales and purchase agreement by the end of this month, he added.

Zhejiang Geely will pay $1.8 billion for Volvo, with the deal to be signed as soon as Sunday, the Financial Times reported Tuesday. Another $750 million of working capital is being raised for the Swedish marque.

China's vice president, Xi Jinping, will be in Sweden Saturday for a state visit. A person close to the transaction said the deal would probably be signed Sunday or Monday, the newspaper said.

Yang Xueliang, Geely's spokesman, said he was not informed of anything not in ac-cordance with the company's original plan, according to which Geely expects to sign a definitive agreement on Volvo in the first quarter and close the deal before June.

Reuters – Global Times