China’s Geely Holding Group said on Wednesday it plans to acquire all outstanding shares in Hong Kong and New York of Zeekr Group, which includes the Zeekr and Lynk&Co brands.
The Group, which calls the offer a “win-win proposal,” currently controls about 65.7% of the Zeekr Group.
Geely, based in Hangzhou and owner of brands including Polestar, Lotus and Volvo, said Zeekr, Lynk&Co and its Geely Auto brand are “all pursuing growth opportunities in vehicle electrification and automation.”
The company called for synergies in “innovative architecture, hardware, software and connected technologies” as competition in the new energy vehicle market continues to become fiercer.
As of the time of writing, Zeekr shares are soaring 11%. After closing at $22.59 on Tuesday, the stock is trading at $25.10 on Wednesday’s pre-market session.
According to the Group’s Chairman Li Shufu, the merger would allow “greater technological synergies, improve innovation capabilities, and increase profitability for all its holdings.”
In February, Zeekr completed its previously announced strategic integration transactions with Geely entities, making Lynk&Co its indirect non-wholly-owned subsidiary.
Zeekr acquired shares in Lynk & Co currently held by Geely Holding and Volvo Cars, with Geely Auto retaining the remaining 49%.
Although Volvo Cars will no longer hold an equity stake in Lynk & Co, the company said late last year it intended to maintain operational collaborations with the brand “in selected markets where there is a strategic benefit for both companies.”
From January 1 to April 30, the Group registered a total of 157,327 vehicles. One in three units was from its premium brand — with 55,130 EVs. It aims to sell 320,000 units in 2025, having completed 17.2% of the target so far.
