Volvo AB’s second-largest shareholder Geely said while it’s not currently planning any changes to its position, “anything is possible” in future.
(Bloomberg) — Volvo AB’s second-largest shareholder Geely said while it’s not currently planning any changes to its position, “anything is possible” in future.
Zhejiang Geely Holding Group Co, controlled by Chinese billionaire Li Shufu, is in “good dialog” with Volvo, Hans Oscarsson, the head of Geely’s Sweden branch, said Tuesday in emailed comments ahead of the world’s second-biggest truckmaker’s annual general meeting.
Geely in March divested its 6.3% stake in Volvo competitor Daimler Truck Holding AG, equivalent to roughly €1.5 billion ($1.6 billion). The sale triggered speculation Geely might seek to step up its influence at Volvo after eliminating the conflict of interest of owning shares in the world’s two largest truck manufacturers.
“Anything is possible in the future,” Oscarsson said. “For the time being we have no intention to change our position in the company.”
He didn’t exclude Geely taking a more active ownership role such as requesting a board seat or joining the nomination committee. Geely, which owns a web of automotive interests in Europe, controls 8.2% of Volvo’s share capital and 16% of votes. Swedish investment company Industrivarden AB is the biggest stakeholder with 27.8% of votes.
Geely bought the stake in Volvo in 2018 from activist investor Cevian Capital AB and has viewed the holding then and now as a “strategic and financially beneficial investment,” Oscarsson said. The exit from Daimler doesn’t change this, he said.
Sweden’s Dagens Industri on Tuesday said Volvo was unlikely to give Geely a board seat due to concerns over Chinese influence hurting the prospects of the truckmaker’s US operations, the paper said, citing unnamed sources.
Volvo declined to comment.
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