Volvo has sold its entire ownership stake in sister brand Lynk & Co. The deal brings the Chinese car brand 5 billion Danish kroner.
In a so-called strategic manoeuvre, Volvo Cars has sold its 30 percent stake in sister brand Lynk & Co. The deal brings the former Swedish brand 5 billion kroner.
The buyer is Zeekr, a sister company of the joint Chinese parent Zhejiang Geely Holding. The deal that, on paper, Lynk & Co. worth just over 19 billion Danish kroner, Volvo Cars brings in 8 billion Swedish kroner.
Reuters writes that.
This sale follows on the heels of a similar transaction where Volvo Cars reduced its stake in Polestar by distributing shares to its shareholders.
The decision to sell the car brand has been made in connection with a new development phase for the car brand, which includes a changed ownership structure.
Volvo Cars has been a minority owner of the newer car brand since its establishment in 2017. Although Volvo Cars is now divesting its ownership stake, the two companies will continue their operational cooperation in selected markets.
Put another way, Volvo will still use Geely technology, and so will Lynk & Co.
– Volvo Cars has been a minority owner in Lynk & Co since the company was formed in 2017.
– The sale takes place in connection with a new development phase for Lynk & Co going forward, which includes a new ownership structure for the company.
– Volvo Cars will continue to focus on operational collaborations with Lynk & Co in selected markets where there is a strategic advantage for both companies, reads a statement from Volvo Cars.
The deal is expected to strengthen Zeekr's position on the market and give Lynk & Co. new opportunities for growth under the new ownership structure.
The brand, which Volvo now no longer has control over, is not in Denmark. At least not officially. Instead, the launch took place last year 'back door'. It is possible to buy the cars as used. But so far it is only about the model 01. All cars are used and only available in black or blue.
Speaking of copper, Zeekr left it earlier this year that the brand dropped a Danish launch. But the story quickly took a turn. Read more about it here .
