Geely to Complete Volvo Acquisition in Early 2010
Although Konsortium Jakob told Ford it was ready to submit a cash bid for its Swedish Volvo brand, Ford has reportedly continued negotiations with Geely and will finalize a sale by early 2010.
The fact that Ford continued negotiations with Geely doesn’t come as a particular surprise, as the two companies had been discussing a Volvo sale for quite some time. The negotiations have progressed to the point where Geely hired Roland Berger Strategy Consultants, a German-based consulting firm, to aid the Chinese company in restructuring and integrating Volvo into its current operations.
According to Reuters, all of the major hurdles between the companies have been cleared, including the touchy subject of intellectual property rights. The only thing pending is the final sale, which Geely says it aims to complete by early 2010. Geely hopes the sale will be done before Chinese New Year, which starts February 14.
“The Volvo deal sees no more hurdles,” the source told Reuters. “It is expected to be done before Chinese New Year, and then Geely will quickly launch integration.”
Geely’s chairman, Li Shufu, hired Deloitte Touche Tohmatsu specifically for the post-acquisition integration of Volvo. Tohmatsu will focus on the integration of Volvo’s marketing and sales in China, network distribution, logistics, and joint global operations. As of right now, Geely has not released details on how it plans to incorporate Volvo.