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Geely says to sign Volvo deal with Ford soon

(Agencies)
Updated: 2010-03-23 13:37

Chinese automaker Zhejiang Geely Holding Group said on Tuesday its talks to buy Ford Motor's Volvo car unit were on track and it expected to sign an agreement in about a week's time.

Media reports had suggested that Zhejiang Geely, China's largest private carmaker and the parent of Hong Kong-listed Geely Automobile, faced financial and technical problems that could delay the transaction, worth up to $2 billion.

"It's a complicated deal and any twists and turns are normal," Geely's spokesman Yuan Xiaolin told Reuters.

The talks are moving ahead as planned and Ford and Geely plan to sign a sales and purchase agreement by the end of this month, he added.

Zhejiang Geely will pay $1.8 billion for Volvo, with the deal to be signed as soon as Sunday, the Financial Times reported on Tuesday. Another $750 million of working capital is being raised for the Swedish marque.

China's Vice-President, Xi Jinping, will be in Sweden on Saturday for a state visit. A person close to the transaction said the deal would probably be signed on Sunday or Monday, the newspaper said.