Chinese Vice-President Xi Jinping will meet Sweden’s king and senior officials, and visit the city of Gothenburg, where Volvo Cars has its headquarters. And then, hopefully, the final document will be signed.
Both sides hope to have signed the deal on Sunday by the time you read this according to two people familiar with the matter said, though they cautioned there was still a possibility it could be delayed.
A Zhejiang Geely representative declined to comment, but told Reuters that the company still aimed to sign a sale and purchase agreement by the end of March.
China surpassed the United States to become the world’s biggest car market last year, and is keen to move into Western markets but lacks the technology and brand recognition to do so. Deals like the Volvo purchase would help Chinese carmaker to get around some of those obstacles more quickly.
Zhejiang Geely plans to add a new factory in China to nearly double its annual global production.
Reuters reports that unions at Volvo have withheld their backing for the deal, setting the stage for a potentially troublesome takeover.