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Geely Submits Volvo Takeover Bid

It was only a matter of time until Geely finally decided to submit a takeover proposal for Ford's Swedish unit Volvo. So here you are, the Chinese carmaker made an official bid to buy Volvo, according to a couple of media reports, but specific details of the offer are yet to be unveiled. A Geely spokesman declined to comment on the news but, as we know, this is usually the first sign that there might be some truth behind this tory.

According to Swedish business daily Dagens Industri, Geely submitted a bid yesterday and Ford is currently reviewing it, with more details likely to surface very soon.

"Geely has been studying Volvo's information since June, particular focusing on the brand value,"
an industry source was quoted as saying by the Shanghai Daily. "It also negotiated with investment banks in the first half of this year to arrange capital for the purchase."

Earlier reports indicated that the Chinese manufacturer is ready to spend as much as $2 billion for Ford's ailing carmaker Volvo but a bunch of analysts hinted that the price could go way lower, mostly because the difficult times the Swedish unit is encountering. Geely has already received the Chinese government's approval to proceed with the acquisition.

A recent report on the matter revealed that Geely is the only interested party for Volvo, in spite of Ford's statement claiming that the parent company was negotiating with multiple investors.

"We've been in discussion with a number of parties concerning the future of Volvo, and that situation hasn't changed," Ford spokesman John Gardiner told Dow Jones some weeks ago. "It's still the case that Volvo is held for sale, and it's probable that Volvo will be sold," said Gardiner. "But this process will still take some time to unfold."
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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