HONG KONG/SHANGHAI :Zeekr, a Chinese premium electric vehicle maker, will assume control of Lynk & Co, a sister brand owned by Geely and Volvo Cars, according to sources. #ZeekrTakesControlLynk
This move marks the first major restructuring step in Geely Holding’s extensive overhaul. Geely owns several brands, including Volvo Cars, and shifts focus from acquisitions to streamlining operations and cutting costs.
As part of the deal, Zeekr will acquire Volvo Cars’ full 30% stake in Lynk and 20% from Geely Holding, sources said anonymously.
Zeekr will increase its stake to 51% through a capital injection, while Geely Automobile Holdings will keep the remaining shares, one source said.
The deal values Lynk & Co at approximately 18 billion yuan ($2.5 billion). It is expected to close by June next year, according to the source.
The details of the planned transaction were not previously disclosed.
Geely Holding has chosen not to comment on the matter.
In September, Geely Chairman Eric Li outlined plans for a group overhaul. He emphasized the need for better integration to improve efficiency and reduce costs. He also stated that each brand must clarify its model positioning to avoid overlap.
Zeekr and Lynk currently have some overlap, with similar products and pricing, which cannibalizes their sales, analysts have noted. #ZeekrTakesControlLynk
Impact of Zeekr’s Control Over Lynk: A Path to Growth and Market Expansion
Additionally, Zeekr’s increased stake in Lynk aligns with Geely’s broader overhaul plan. This shift will help reduce redundancy within the group. Furthermore, the integration will foster innovation, particularly in connected vehicles, as both brands share valuable research.
The acquisition is expected to reshape the future of both companies. With Zeekr taking control Lynk, the consolidation will focus on reducing operational overlap. Consequently, the deal will likely enhance both companies’ market positions, paving the way for future growth. #ZeekrTakesControlLynk
