Geely expects to close Volvo deal in third quarter

SHANGHAI: China's Zhejiang Geely Holding said on Thursday it expected to close its acquisition of Sweden's Volvo Cars in the third quarter after the European Commission cleared the takeover earlier this week.

"We feel very relieved at the approval," Geely said in a statement, adding the transaction should be completed by the end of September.

Geely, which acquired Volvo in March, has said it will spend 2.7 bn dollars on the deal, which includes the original price tag of 1.8 bn dollars plus 900 mn dollars in working capital to improve the brand.

The European Union's competition watchdog on Tuesday cleared the takeover of Volvo Cars by Geely and the regional investment fund Daqing.

Geely has said it plans to expand Volvo's presence in China, now the world's largest car market.

The Chinese company acquired the loss-making Swedish brand -- known for its sturdy family-friendly vehicles -- from Ford Motor Co., which had owned it for a decade.

Geely has become one of China's largest private car makers since launching its auto manufacturing business in 1997. It has an annual production capacity of 300,000 cars, but has sold less than 200,000 units abroad since 1997.