China's Geely Holding has bought an 8.2% stake in AB Volvo from activist investor Cevian Capital, turning it into the second largest shareholder of AB Volvo. The value of the investment amounted to around 27.2-billion Swedish crowns ($3.26-billion), a Reuters calculation showed, although Geely and Cevian did not disclose the exact value of the transaction in their statement on Wednesday. Mack is in the midst of adding another 400 workers to the plant's payroll, which will bring the facility's total employment to 2,400 as the company responds to higher market demand, including interest in its new highway truck.
The purchase of AB Volvo, which sells Volvo- and Renault-branded trucks and buses, expands Geely's formerly marginal footprint in commercial vehicles.
Geely has surprised the automotive world with its resurrection of Volvo Cars since its acquisition of the Swedish carmaker in 2010.
"We recognize and value the proud Scandinavian history and culture, leading market positions, breakthrough technologies and environmental capabilities of AB Volvo", Geely chairman Li Shufu said in a statement.
"On completion and following necessary regulatory approvals, Geely Holding will become the largest holder of AB Volvo's share capital". He further stated that Geely would be supportive of Volvo's management and board as it implements its strategy.
Lynk & Co, a joint venture between Volvo Cars and its parent group Geely, started selling its first model last month, joining the competition in the mainland's mainstream auto segment which is dominated by foreign brands including Volkswagen, General Motors, Ford and Toyota.
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