Chinese car maker Zhejiang Geely Holding Group said Wednesday that it would by a $3.23 billion stake in Swedish truck and bus company Volvo AB, another sign of Chinese companies’ appetite for global auto assets, The Wall Street Journal reports.
Geely, which also owns Volvo Cars, said it had reached an agreement with Cevian Capital to acquire the investment firm’s 8.2% equity stake and 15.6% voting rights in Volvo AB, making it one of the largest shareholders in the company.
The move represents another step by Geely – China’s most-acquisitive auto maker – to become a global player. In recent months, Geely Chairman Li Shufu has begun to assemble a diverse brand portfolio reminiscent of that controlled by Volkswagen AG, encompassing mass-market, premium and luxury passenger cars as well as commercial vehicles. In May, Geely agreed to buy a 51% stake in British sports-car brand Lotus and a 49.9% stake in struggling Malaysian car maker Proton Holding, which gave it a foothold in Southeast Asia.