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Geely named favored Volvo bidder
Geely named favored Volvo bidder
Posted Friday, Oct 30, 2009, 2:39 pm in Employee News
Geely Holding Group Co. was named the “preferred bidder” for Ford Motor Co.’s Volvo Car Corp. unit, paving the way for China’s first acquisition of a major overseas automaker, Bloomberg reported.
Geely is “very glad to see that we have made progress in the negotiations,” founder Li Shufu said in a statement posted on the company’s Web site yesterday. “If we reach a final agreement, Geely will protect and strengthen Volvo’s traditional status as a world-class brand.”
Talks may still stumble as Ford and Geely are yet to resolve protection for intellectual-property rights, a person familiar with the situation told Bloomberg. China’s biggest automaker outside of state control wants to buy Sweden-based Volvo to expand overseas as rising domestic competition crimps margins, the news service said.
Geely has support from Chinese banks for the deal, according to the statement. No specific lenders were named. Geely’s group is prepared to pay about $2 billion for Volvo, less than a third of what Ford paid a decade ago, people familiar with the talks told the news service. (Bloomberg)
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