According to a report by Reuters, Goldman Sachs will invest $334 million in Geely Automobile Holdings of China that will boost the Chinese automakers global ambitions along with a potential bid to buy Ford’s Volvo brand.
“It’s a wise move for Geely as it can use the money to build up capacity and free up capital for its parent, which has publicly announced its interest in Volvo,” said Yi Junfeng, an analyst with Changjiang Securities.
It was reported earlier this month that Geely is interested in purchasing Volvo, which has been valued close to $2 billion. Geely said that it is interested in Volvo’s car business and not its truck business.
Geely also approached Magna International about a potential partnership on the Canadian company’s purchase of GM’s Opel brand.
Goldman could end up with 15.1 percent of Geely if it fully converts the bonds and warrants.
– By: Stephen Calogera