The Chinese owner of Volvo Cars is to become the biggest shareholder of truckmaker Volvo Group, in a potentially historic realignment between the two Swedish automotive businesses.
Zhejiang Geely will pay about €3.25bn to Cevian Capital, Europe’s largest activist investor, for an 8.2 per cent stake in the truckmaker, which comes with 15.6 per cent of the voting rights.
Talk of reuniting the two brands — split up when Volvo Group sold Volvo Cars to Ford in 1999 — is “premature”, according to people close to the transaction.
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