Geely agrees to buy Ford's Volvo for $1.8b

Zhejiang Geely Holding Group (0175.HK) reached an agreement with Ford Motor (F.NYSE) to buy Ford’s Volvo brand for US$1.8 billion, Bloomberg reported. Ford will receive US$1.6 billion in cash and a US$200 million note from Geely under the deal, which is expected to close in the third quarter of this year. Ford has been trying to strengthen its financial position by shedding "non-core" brands. The sale makes Geely, China’s largest private automobile manufacturer, the first Chinese company to own a major global car brand. The deal covers intellectual property rights, supply, and research and development. Li Shufu, Geely’s chairman, said he hopes to eventually sell 200,000 Volvos a year in China, up from about 22,000 last year.