Geely CEO Gui Sheng Yue

The European Union competition regulators have approved FoMoCo’s sale of Volvo to Chinese automaker Geely Automobile Holdings Ltd. and the state-owned investment group Daqing. The EU executive body said in a statement that following their investigation, the European Commission concluded that the deal would not significantly hurt competition in Europe.

The Volvo/Geely deal is expected to be finalized sometime during the third quarter.

Geely will cash out a total of $1.8 billion for Volvo and its related assets. The Chinese automaker has previously said that it expects Volvo to break even in the fourth quarter of 2010.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)