According to MSNBC, the European Commission gave Geely its approval after deciding the sale does not violate any antitrust regulations. In the Commission's view, none of the involved parties will get an insurmountable edge over the competition as a result of the transaction. The decision, says the EU, will not influence future resolutions regarding possible state subsidies for Volvo.
The deal signed back in in March by Ford and Geely is expected to be finalized in the third quarter of the current year. Geely will pay Ford a total of $1.8 billion: the transaction will be initiated through a $200 million note of amount, with the rest of the money to be paid in cash.
As Volvo vehicles use Ford components, Ford and Geely have developed an intellectual property management plan that will allow both companies to deliver their business plans without risks. The plan includes measures such as the granting of sublicenses for certain Ford intellectual property assets related to Volvo Cars to third party companies, including Geely.
Ford will continue to supply certain components to Volvo and will provide technical know-how and other related information to Geely.
Last week, Geely announced 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.
As for the man to lead the Chinese owned Volvo, the most recent reports point to Volkswagen America CEO, Stefan Jacoby, taking over. Rumor is Jacoby will replace Stephen Odell at the helm of the Swedish manufacturer this August.
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