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Geely buys Volvo at last

The sale of Volvo to Zhejiang Geely appears to have been without a political hitch. Ford and Geely have now formally announced that Geely will purchase Volvo for $1.8 billion. And there appears to have been no political fall-out from the deal.

When foreign companies buy significant US assets, they can often run into opposition. Dubai Ports, for example, eventually withdrew its bid in 2006 to buy a number of US ports when then-Senator Barack Obama, among others, questioned the deal. And China’s state-owned oil company, CNOOC, had US Congress block the proposed $18.5 billion acquisition of a California oil firm, Unoca. 
 
Despite the Google dramas and the fact Geely is also on close terms with the Cuban government the deal appears to have gone through with a hitch.
 
Ford and Geely have been circling each other for months to finalize the sale. Ford said in its announcement that it will not retain any ownership in Volvo. In fact, that is not quite the case.

bnet reports Ford will continue to supply Volvo Cars with engines, transmissions and other components. Ford said it will also provide engineering support, information technology, access to tooling for common components, and other services for a transition period that was not publicly specified. In turn, Ford uses safety features in its cars that were developed by Volvo.

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