China's Geely to Buy Ford's Volvo in Record Deal (Update3)
Monday, March 29, 2010
March 29 (Bloomberg) -- Zhejiang Geely Holding Co. agreed to buy Volvo Cars from Ford Motor Co. for $1.8 billion in the biggest overseas acquisition by a Chinese automaker, more than 18 months after the two companies first entered discussions.
The price includes a $200 million note and the remainder to be paid in cash, Ford Chief Financial Officer Lewis Booth said yesterday in Gothenburg, Sweden. Time spent on seeking regulatory approval in different jurisdictions means the companies now aim to complete the deal in the third quarter, Geely Chairman Li Shufu said.
Geely Automobile Holdings Ltd., the automaker's listed unit, gained 1.5 percent to HK$4.16 in Hong Kong trading. Ford rose 12 cents to $13.98 at 8:04 a.m. before regular New York Stock Exchange composite trading, extending a surge of 39 percent this year through March 26.
