Geely Automobile Holdings Ltd. (GELYY) has reached an agreement to acquire Cevian Capital's 8.2% stake in Swedish trucks and buses maker Volvo AB (VOLV-B.SK).
Geely, the Chinese private auto group that owns Volvo Car Group, said Wednesday that the deal would give it 15.6% of voting rights in Volvo and make it the largest shareholder in the commercial vehicle company.
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In 2010, Geely bought the Volvo Car Group from Ford Motor Co. (F) for $1.8 billion. Volvo Car Group and Volvo AB are often conflated, but both companies are independent from one another.
"Given our experience with Volvo Car Group, we recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo," said Li Shufu, chairman of Geely.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
December 27, 2017 03:20 ET (08:20 GMT)