Geely to Become Top Volvo AB Investor as Cevian Sells Stake

The Chinese auto manufacturer plans to buy Cevian‘s 88.5 million Class A Volvo shares and 78.8 million Class B shares, corresponding to 8.2 percent of the capital and 15.6 percent of the votes, the companies said Wednesday. The deal is valued at about 3.25 billion euros ($3.86 billion), people familiar with the matter said, verifying a figure reported earlier by Swedish newspaper Dagens Nyheter.

With the purchase, Geely, which owns the Volvo Car brand that Volvo AB sold almost two decades ago, is making its first foray into the heavy truck and bus segment, and it‘s also extending its effort to bulk up outside of China. Geely in September bought a 49.9 percent stake in Malaysia‘s Proton Holdings Bhd. as well as 51 percent of British sports-car maker Lotus Cars.