Volvo Cars has announced the sale of its 30% stake in Lynk & Co to Zeekr, a move that marks a significant shift in the company’s investment strategy. The divestment, valued at RMB 5.4 billion (approximately SEK 8 billion), reflects Lynk & Co’s transition into a new phase of development with an updated ownership structure.
Key Transaction Details
Under the terms of the agreement, 70% of the consideration will be paid in cash at the time of closing, with the remaining 30%, plus interest, to be paid one year after the transaction is finalized. The deal is expected to close in the first quarter of 2025, subject to approval from Volvo Cars’ shareholders and regulatory bodies.
Volvo Cars has held a minority stake in Lynk & Co since the brand’s inception in 2017. Despite this sale, Volvo will continue its operational collaborations with Lynk & Co in select markets where both companies can benefit from strategic partnerships.
The transaction will involve Volvo Cars (China) Investment Co., Ltd, an indirect subsidiary of Volvo Car AB, selling its shares in Lynk & Co Automotive Technology Co., Ltd to Zhejiang Zeekr Intelligent Technology Co., Ltd, an indirect subsidiary of Zeekr Intelligent Technology Holding Limited.
Looking Ahead
This move allows Lynk & Co to embark on a new path of growth, with Zeekr now holding a significant share of the company. Volvo Cars remains committed to exploring synergies with Lynk & Co in key markets, focusing on enhancing operational efficiency and strengthening its core business strategy.
The transaction is part of Volvo Cars’ broader efforts to streamline its portfolio and invest in areas that align with its long-term strategic goals. The sale is a step towards optimizing Volvo’s investments while supporting Lynk & Co’s next chapter of development.
Source: Volvo
This article was crafted with assistance from Chatgpt
