NDRC 'positive' on Geely's Volvo buy

• Source: Global Times
• [08:27 April 12 2010]
• Comments

Zhang Xiaoqiang (C), vice chairman of China's National Development and Reform commission, attends the forum: "Rethinking Growth" during the Boao Forum for Asia (BFA) Annual Conference 2010 in Boao, a scenic town in south China's Hainan Province, April 10, 2010. Photo: Xinhua

China's State planner said April 10 it is leaning in favor of approving a landmark $1.8 billion deal for Zhejiang Geely, China's top private carmaker, to buy Ford's money-losing Volvo unit.

The deal, which was reached last month, must be approved by China's National Development and Reform Commission (NDRC), the country's State planner, and the Ministry of Commerce before it can close.

The NDRC had a positive attitude toward approval of the deal, NDRC vice-chairman Zhang Xiaoqiang told reporters at the Boao Forum.

"Personally I think as a private enterprise, after years of hard work, coming to a deal to acquire Volvo was not an easy task," he said. "However there could be pressure on funding, problems arising from cultural collaboration and relationships with unions. If they can answer these queries, I think the NDRC's attitude is positive."

Reuters