Renault, China’s Geely Deepen Ties With Korean Stake Deal
- The two carmakers will jointly develop a new model in Korea
- Renault to remain largest shareholder in Korea operations
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Chinese auto giant Geely Automobile Holdings will buy a 34% stake in Renault’s Korean unit as the two carmakers deepen their cooperation on development of eco-friendly models in a market dominated by local brand Hyundai Motor Co.
Centurion Industries Ltd., a wholly-owned unit of Geely, is paying about 264 million won ($207 million) for the holding in Renault Korea Motors, Geely said in a company filing. The acquisition will create synergies with Geely in South Korea, a market with potential for strong growth, Renault Korea said in a separate statement Tuesday.