China To Get Stake In $1.8B Volvo Deal

Law360, New York (June 24, 2010, 3:47 PM EDT) -- Zhejiang Geely Holding Group Co. Ltd., the Chinese car manufacturer buying Volvo Car Corp. from Ford Motor Co. for $1.8 billion, has reportedly secured financial backing from a state-owned Chinese investment company.

The news was first reported late Wednesday by a Swedish television station, according to The Local, an English-language Swedish news website. The Chinese company will get a 40 percent stake in Volvo and apparently have influence over where a Chinese factory will be built, the television station reported.

“This signifies financial security for the...
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