According to just-auto.com, Geely announced late last week it has partnered with Chinese regional asset manager Daqing State Asset Operation, who will help raise the $1.8 billion needed to complete the transaction. The agreement between the two Chinese companies will make Daqing a minority shareholder it what is to be the biggest Chinese purchase of a foreign automotive company.
So far, however, there are not much details about how the deal between Geely and Ford is progressing. The sale of Volvo is expected to be concluded in the third quarter of the year, being agreed upon this March.
Geely will pay Ford a total of $1.8 billion, minus debt and pension adjustments: the transaction will be initiated through a $200 million note of amount, with the rest of the money to be paid in cash.
The deal states that Ford will continue to supply certain components to Volvo and will provide technical know-how and other related information until the separation process reaches the 100 percent completion point.
Ford and Geely have developed an intellectual property management plan that will allow both companies to deliver their business plans without risks.
The most recent reports point to Volkswagen America CEO, Stefan Jacoby, taking over as CEO for the Chinese-owned Volvo. According to reports, Jacoby will replace Stephen Odell at the helm of the Swedish manufacturer this August.
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