Europe approves FoMoCo’s sale of Volvo to Geely

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)