Volvo Cars sells its stake in Lynk & Co to Zeekr
Volvo Cars is divesting its 30% stake in Lynk & Co to Zeekr, a transaction representing a consideration of RMB 5.4 billion (approximately EUR 707 million).
Volvo Cars has been a minority shareholder in Lynk & Co since it was founded in 2017. The divestment is part of Lynk & Co's future development strategy, which involves a new ownership structure for the company. Volvo Cars will continue to focus on operational collaborations with Lynk & Co in markets where both companies can benefit strategically.
The consideration will be paid in cash, with 70% of the amount paid at closing of the transaction and 30% plus interest paid one year after closing. The transaction is expected to close during the first quarter of 2025, a press release reads.
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 transaction is subject to approval by an extraordinary general meeting of Volvo Cars’ Shareholders expected to be held in the first quarter of 2025, as well as other regulatory approvals.
