Geely Automobile and its sister company Volvo Cars are planning to merge and list in Hong Kong and possibly Stockholm, Reuters reports.
Monday’s move to merge the two units come as global automakers pursue alliances to respond better to the cost of switching to electric cars, tougher emission rules and autonomous driving. It remains unclear how much valuation would be added to Geely, a Hong Kong-listed, $16 billion company, by injecting Volvo assets.
Geely’s sales have increased since 2015, after the brand integrated Volvo’s technology into its own brand.
According to the publication, Geely sold 1.36 million cars in 2019 and hopes to sell 1.4 million cars this year. Volvo only sold 700,000 cars last year.