How does Geely's financing plan for Volvo affect its capital structure?

After Geely buys Volvo, it will not only own Volvo's product line, but also own Volvo's intellectual property rights. This has a far-reaching impact on the technology and brand upgrading of independent brands, and it is also an important way to rapidly enhance the influence of China automobile.

As a private enterprise, Geely has flexible mechanism and tenacious vitality. From "self-seeking failure opportunity" to successful strategic transformation, Geely Automobile led by Li Shufu witnessed the development of China Automobile "golden decade", withstood the test of the market and gradually developed and expanded.

In addition to the strong support of state power, private capital is also an important promoter of the "Jiwo case". According to foreign media reports, in order to successfully acquire Volvo, Geely's financing amount is as high as 2.7 billion US dollars. Among them, private capital accounts for a large part. The involvement of private capital shows that Geely's strength has been widely recognized.

The painful lesson of SAIC's acquisition of Ssangyong tells us that the acquisition is only the first step of the Long March, and the final victory is to operate well and make money. As a private enterprise, Geely will naturally feel even more distressed if every penny is taken out of its own pocket. Therefore, in the process of operation, it will definitely be more considerate and cautious.

Extended data

Geely's acquisition of Volvo will make China's own brand automobile enterprises own a luxury brand with great value for the first time, which has been generally accepted, especially in developed countries and regions such as Europe, America and Japan. Geely can build a brand-new high-end brand by relying on Volvo's core intellectual property rights, and further enhance the brand image and international recognition of Geely Manufacturing and even China Manufacturing.

Qiao Liang, the first doctor of applied economics in China to study the automobile industry, said: "From the perspective of the capital market, this acquisition is a positive signal for Geely. In the past, everyone's impression of Geely was low-end and not safe enough. If we can successfully absorb Volvo's core technology and turn its technology, products and market into our own things, it will reshape Geely's position and image in the hearts of the public. "

Public trust. Com-News analysis: an in-depth interpretation of Geely's acquisition of Volvo

Public trust. Com- Geely's acquisition of Volvo: the victory of government power and private capital