The Chinese automotive giant and major shareholder in Volvo, Geely Holding, is now pursuing a $2.4 billion loan.
Secon Largest Sharholder
They want the loan to bolster their holdings in the Swedish car and truck brands.
Geely owns 78% of Volvo Cars and holds a 4.4% stake in Volvo Trucks, along with 14% of the voting rights, making it Volvo Group’s second-largest shareholder after Swedish investment firm Industrivärden.
This move, reported by Boosted, aims to allow Geely to sustain its stake in Volvo without needing to sell shares.
To finance this large loan, Geely is negotiating with several banks to arrange a syndicated loan — a lending structure that involves multiple lenders to manage high-value loans.
Maintaining Influence in Europe
Although specific banks have not yet been disclosed, the involvement of major international banks is anticipated.
Geely has previously sold some shares in Volvo to reduce its stakes, but this new loan would support its current ownership, indicating a long-term commitment to the Volvo brand and its future.
Geely’s investment reflects its strategy of maintaining influence in European brands while securing capital to expand globally.
Alongside Volvo, Geely’s extensive portfolio includes well-known brands like Lotus and Polestar. Geely’s approach is part of a broader trend of non-Western companies acquiring or investing in legacy Western car brands.
For example, Indian company Tata acquired Jaguar Land Rover in 2008, and Chinese automotive firm SAIC now owns MG.
This globalized ownership trend is not uncommon; even before its bankruptcy in 2014, Saab had multiple Chinese investors.
