The Ministry of Commerce (MofCom) has granted Geely Holding Group (0175.HK) final approval to acquire the Volvo car brand from Ford Motor (F.NYSE) for US$1.8 billion, AP reported. Geely spokesperson Ning Shuyong said that the approval will allow Geely to formally complete the acquisition, which is planned to close in the third quarter of this year, having been underway since March. The deal, China’s largest foreign acquition in the auto sector, will give Geely access to a well-known international brand and advanced technology. It was approved by European regulators earlier in July. Ford has been trying to unload Volvo since 2008 to raise cash and support its core brands, Ford and Lincoln. While Geely is optimistic about the prospects for Volvo in China, analysts question whether the company has the experience to turn the brand around in Europe and the US, where Volvo has consistently lost money.
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