Report: Geely to complete Volvo acquisition in early 2010

Sources close to the talks say that Zhejiang Geely Holding Group aims to complete its acquisition of FoMoCo’s Volvo Car Corp in early 2010. Insiders told Reuters that Geely has hired consultants for restructuring and integration.

The consultants are German-based Roland Berger Strategy Consultants who will launch a 100-day internal review and restructuring to improve the Geely’s operations with a focus on sales of Geely branded vehicles in China.

“The Volvo deal sees no more hurdles,” a source who asked to remain anonymous said. “It is expected to be done before Chinese New Year, and then Geely will quickly launch integration.”

Keep in mind that the Chinese New Year will start on Feb 14.

Ford previously selected Geely as its preferred bidder for loss-making Volvo. The price of Volvo is estimated to be worth about $1.8 billion.

– By: Omar Rana

Source: Reuters