Ford Set to Close Volvo Sale to China's Geely by June
By Michelle Krebs December 23, 2009Ford Motor Co. confirmed Wednesday details of its sale of Volvo to China's Zheijang Geely 
Holding Group Company Ltd. have been settled, and the deal likely will close in the second quarter of next year.
Saying more information would be revealed when the final documents are signed in the first quarter of 2010, Ford provided no details about the terms of the sale, including the price. Experts estimate the price $1.8 billion, making it the largest overseas acquisition by a Chinese automaker.
Ford anticipates the sale will close in the second quarter of 2010, after regulatory approvals. Geely said in a statement its focus now shifts to those regulatory approvals as well as documentation and financing for the deal. Geely has loan agreements with a trio of Chinese banks.
Ford did say the sale "would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise." Further, Ford said it would continue to cooperate with Volvo in several areas but not own a stake in the company.
Ford put Volvo up for sale a year ago as the last foreign luxury brand it sold off. Already sold were Aston Martin, Jaguar and Land Rover. Ford paid about $6 billion for Volvo a decade ago. -- Michelle Krebs, Senior Analyst and Editor at Large
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Volvo was sold to the Premier Auto Group of Ford Motor in January 1999.
They outbid Fiat and Volkswagen. Intreresting.
It is good to see the Ford/Geely transaction executed in a painstaking, orderly way.
Merry Christmas, EVERYONE!
Part of me is glad Ford is dumping Volvo. Another part of me is sorry to see the tech go to Geely.
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