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Geely’s Shanghai Share Sale Is Said to Hold Up Volvo Merger

Geely Automobile Holdings is delaying its planned merger with Sweden's Volvo Cars because of the Chinese automaker’s plans for a secondary listing in Shanghai, according to a media report. The pair will resume merger talks this fall, The Paper reported today, without disclosing its sources. Geely and Volvo said in February that they were exploring a combination, with a view to issuing shares in Hong Kong and Stockholm. Geely Automobile and Volvo are two independent units of Geely Holding Group which bought the underperforming Gothenburg-based automaker from Ford Motor in 2010. Geely Automobile's board has approved a proposal to sell new shares on the Nasdaq-like Star Market, Shanghai's year-old science and technology board, making up 15 percent of the total outstanding, the Hong Kong-listed firm said on July 17. In the first half of this year, Volvo lost SEK989 million (USD110 million) amid the Covid-19 pandemic after reporting net profit of SEK5.5 billion (USD620.3 million...