June 18, 2018 / 3:18 PM / a month ago

China's Geely completes deal to buy AB Volvo stake

STOCKHOLM (Reuters) - China’s Geely Holding GEELY.UL has assumed ownership of a 14.9 percent voting stake in Swedish truckmaker AB Volvo (VOLVb.ST), a disclosure notice showed on Monday, completing a deal which has been pending since December.

FILE PHOTO: The Geely Automobile Holdings logo is pictured at the Auto China 2016 auto show in Beijing, China April 25, 2016. REUTERS/Kim Kyung-Hoon/File Photo

Geely’s deal to buy activist fund firm Cevian Capital’s stake in the Swedish truck and construction equipment maker was announced on Dec 27 last year.

Under the terms of the deal Nomura International Plc and Barclays Capital Securities Limited first acquired Cevian’s shares, with an undertaking to sell them on to Zhejiang Geely Holding Group, as the company is formally known, when the necessary regulatory approvals had been received.

Geely Chief Financial Officer Daniel Li was quoted by Swedish public service radio SR in April as saying approval from Chinese authorities had been obtained.

Geely announced in February it had bought a stake of almost 10 percent in Germany’s Daimler (DAIGn.DE), AB Volvo’s main rival.

The Chinese company’s shares in AB Volvo will be held by Geely Sweden Industry Investment AB, according to another disclosure notice.

Reporting by Johannes Hellstrom; editing by Niklas Pollard

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