Geely completes Volvo acquisition

Ford Motor (F.NYSE) announced it has completed the sale of Volvo Cars to China’s carmaker Geely Holding Group (0175.HK) for US$1.5 billion, the biggest Chinese overseas acquisition in the auto sector yet, Financial Times reported. Ford said Geely paid US$1.3 billion in cash on Monday and issued a US$200 million note to complete the sale. It is a lower amount than the US$1.8 billion the US carmaker said it planned to raise when the deal was first agreed in March. Still, Ford said a "true-up" of purchase price adjustments later this year "is expected to result in additional proceeds to Ford." Geely also added that the closing price reflects adjustments in areas such as pension obligations and working capital. This is Ford’s last disposal of an overseas car brand. Geely’s chairman Li Shufu, who becomes Volvo’s new chairman, said the deal marked "a historic day for Geely, which is extremely proud to have acquired Volvo Cars".