Skip to content
Subscriber Only
Markets
Deals

China's Billionaire Li Turns Gaze on Volvo Trucks After Cars

  • Li’s Geely to buy stake in Volvo AB, becoming top shareholder
  • Geely transaction valued at about $3.9 billion, people say
Video player cover image
Cevian Capital Co-Founder Christer Gardell discusses why the firm sold its stake in Volvo to a Chinese company.(Source: Bloomberg)
Updated on

About a decade after Chinese billionaire Li Shufu bought the Volvo Car nameplate from Ford Motor Co. and revived the brand, he’s turning his attention to the Swedish company’s heavy vehicles in a bid to bulk up outside China.

Li’s Zhejiang Geely Holding Group Co. said Wednesday it plans to buy a stake in Volvo AB from activist investor Cevian Capital AB, making it the truckmaker’s largest shareholder. The deal is valued at about 3.25 billion euros ($3.9 billion), people familiar with the matter said separately, verifying a figure reported earlier by Swedish newspaper Dagens Nyheter.