HONG KONG/SHANGHAI (Reuters) -Chinese language premium electrical automobile maker Zeekr will take management of Lynk & Co, a sister model owned by Geely and Volvo (OTC:) Automobiles, two sources with direct information of the plans stated.
It is the primary massive restructuring transfer in a sweeping overhaul deliberate by Geely Holding, the mum or dad firm of all three automakers in addition to 9 different automotive or truck manufacturers, because it shifts away from acquisitions to streamlining its operations and slicing prices.
Beneath the deal, Zeekr will buy Volvo Automobiles’ complete 30% stake in Lynk and a 20% stake from Geely Holding, stated the sources who declined to be recognized because the discussions had been personal.
Zeekr will then to nudge its stake as much as 51% with a capital injection whereas Geely Vehicle Holdings (OTC:), the group’s predominant listed arm, will proceed to personal the remaining, one of many sources stated.
The deal values the Chinese language-Swedish model at round 18 billion yuan ($2.5 billion) and ought to be accomplished by June subsequent 12 months, stated the particular person.
Particulars of the deliberate transaction haven’t beforehand been reported.
Geely Holding declined to remark.
Geely Chairman Eric Li introduced plans for the group overhaul in September, telling workers that deep integration was wanted to enhance effectivity and cut back prices. All manufacturers within the group ought to make clear how its fashions are positioned in order that overlap may be averted, he added.
Zeekr and Lynk have some overlap with related merchandise and pricing, cannabilising one another’s gross sales, analysts have stated.
Inside the group, Zeekr is anticipated to guide innovation for electrical and related automobiles, sharing that analysis with different manufacturers together with Lynk and Polestar (NASDAQ:), stated one of many sources and a 3rd particular person with direct information of integration.
Lynk’s product group began to report back to Zeekr CEO Andy An final week and there have been discussions about leveraging extra applied sciences and elements that the 2 automakers share, the third particular person stated.
Lynk’s two newest EV fashions, the Z10 and Z20, share the identical structure utilized by Zeekr’s vehicles whereas its gasoline and hybrid fashions use totally different platforms developed by Geely and Volvo Automobiles.
Lynk, which was launched in 2016 and at present has 9 fashions, offered roughly 195,600 automobiles within the first 9 months of the 12 months, a 40% improve over the identical interval a 12 months in the past.
By comparability, Zeekr, a three-year outdated model, offered virtually 143,000 vehicles within the first 9 months of 2024 with six fashions, up 81%.
Zeekr listed in New York in Might and has seen its shares climb virtually 40% since then, giving it a market worth of $7.3 billion.
($1 = 7.2425 )
