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Volvo Cars has announced the sale of its 30% stake in Lynk & Co to Zeekr, for a total consideration of RMB 5.4 billion (approximately SEK 8 billion). The transaction will be settled in cash, with the majority of the payment due upon closing, which is anticipated in the first quarter of 2025.
Key Highlights:
- Payment Structure: 70% of the consideration will be paid at the closing of the transaction, with the remaining 30% plus interest due a year after closing.
- Timeline: Transaction expected to close in Q1 2025, pending shareholder and regulatory approvals.
- Operational Collaborations: Volvo will continue to work with Lynk & Co in markets where it provides strategic benefits for both companies.
- Approval Process: Subject to an Extraordinary General Meeting of Volvo Cars’ Shareholders and other regulatory approvals.
Volvo Cars has held a minority stake in Lynk & Co since its inception in 2017. The divestment marks a new development phase for Lynk & Co, paving the way for a revised ownership structure. Volvo will maintain its focus on operational collaborations with Lynk & Co, specifically in markets where there are mutual strategic benefits.
The transaction involves Volvo Cars (China) Investment Co., Ltd, an indirect subsidiary of Volvo Car AB, selling its share in Lynk & Co Automotive Technology Co., Ltd to Zhejiang Zeekr Intelligent Technology Co., Ltd, an indirect subsidiary of Zeekr Intelligent Technology Holding Limited.
The deal is contingent on approval by an Extraordinary General Meeting of Volvo Cars’ shareholders, expected in the first quarter of 2025, alongside other necessary regulatory clearances.
This transaction disclosure is in compliance with the EU Market Abuse Regulation (EU nr 596/2014) and was submitted for publication on November 14, 2024, at 09:04 CET.
Volvo Cars in 2023
In 2023, Volvo Car Group achieved a record-breaking core operating profit of SEK 25.6 billion. Revenue for the year reached an all-time high of SEK 399.3 billion, with global sales totaling 708,716 vehicles, setting a new company record.
About Volvo Car Group
Founded in 1927, Volvo Cars has grown to be one of the most respected car brands globally, with a presence in over 100 countries. Volvo Cars is listed on the Nasdaq Stockholm exchange under the ticker “VOLCAR B”.
“For life. To give people the freedom to move in a personal, sustainable, and safe way.” This mission is reflected in Volvo’s commitment to becoming a fully electric car maker and reducing its carbon footprint, aiming for net-zero emissions by 2040.
As of December 2023, Volvo Cars employed approximately 43,400 full-time employees worldwide. The company’s headquarters, product development, marketing, and administrative functions are primarily based in Gothenburg, Sweden. Volvo also has production facilities in Gothenburg, Ghent (Belgium), South Carolina (USA), and various locations in China, including Chengdu, Daqing, and Taizhou, as well as R&D and design centers in Gothenburg and Shanghai.
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