China's Zhejiang Geely Holding has agreed to buy Volvo for US$1.8 billion (NZ$2.55b)
Zhejiang Geely Holding Group has agreed to buy Ford Motor's Volvo car unit.
The takeover ends almost two years of talks with Geely over Volvo - the last sale from Ford's former premier group, which also held Aston Martin, Jaguar and Land Rover.
Geely chairman Li Shufu told a news conference that Volvo Cars would remain a separate company with its own management team based in Sweden.
"We are pleased to have reached this agreement with Ford, enabling us to safeguard and strengthen Volvo's renowned brand heritage. This transaction will ensure Volvo's Page 1 of 2 continued leadership in the premium segment, where it enjoys a global reputation for safety and environmental-friendly technologies. This famous Swedish premium brand will remain true to its core values of safety, quality, environmental care and modern Scandinavian design," Shufu said in a statement.
Geely said it had secured all the necessary financing to complete the deal, though it remained open to a possible loan from the European Investment Bank.
The Chinese carmaker secured Volvo at a price tag well below the US$6.5 billion (NZ$9.23b) Ford paid for it in 1999.
"We think it's a fair price for a good business," Ford Motor's Chief Financial Officer Lewis Booth told a news conference.
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