Geely says to sign Volvo deal with Ford soon

Chinese automaker Zhejiang Geely Holding Group said on Tuesday its talks to buy Ford Motor's  Volvo car unit were on track and it expected to sign an agreement in about a week's time.

Media reports had suggested that Zhejiang Geely, China's largest private carmaker and the parent of Hong Kong-listed Geely Automobile, faced financial and technical problems that could delay the transaction, worth up to $2 billion.

"It's a complicated deal and any twists and turns are normal," Geely's spokesman Yuan Xiaolin told Reuters.

The talks are moving ahead as planned and Ford and Geely plan to sign a sales and purchase agreement by the end of this month, he added.

Zhejiang Geely will pay $1.8 billion for Volvo, with the deal to be signed as soon as Sunday, the Financial Times reported on Tuesday. Another $750 million of working capital is being raised for the Swedish marque.

China's Vice-President, Xi Jinping, will be in Sweden on Saturday for a state visit. A person close to the transaction said the deal would probably be signed on Sunday or Monday, the newspaper said.

(Source: China Daily)