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Geely to acquire stake in Renault Korea

By Yang Yang | chinadaily.com.cn | Updated: 2022-05-10 17:01

The Geely logo is seen on a rim at a car dealership in Shanghai, on Aug 17, 2021. [Photo/Agencies]

Geely Automobile Holdings and Renault Group have reached an agreement by which Geely Auto will acquire 34.02 percent of the shares in Renault's Korea unit through a capital increase mechanism, Geely announced on Tuesday.

This deal, which will be subject to approval by relevant authorities, will enhance collaboration between Renault Group and Geely Auto in future projects around the launch of an all-new vehicle lineup for the South Korean market.

Geely Holding Group, the parent company of Geely Auto, and Renault Group jointly announced a new collaboration in January this year to produce fuel-efficient hybrid electric vehicles and internal combustion engine models.

The new vehicles will utilize Geely Holding Group's world-class compact modular architecture and advanced hybrid powertrain technologies. They will be sold through the existing RKM sales and aftersales network.

Renault Group remains the majority shareholder in RKM and will continue to fully consolidate the entity, according to the announcement.

The capital increase reflects Geely Holding Group and Renault Group's strong confidence in the South Korean market and their commitment to explore export opportunities.

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