BRIEF: Geely Holding partners with Renault on NEVs in Brazil

Geely Automobile Holdings Ltd. (0175.HK) announced on Tuesday its parent, Zhejiang Geely Holding Group Co. Ltd., has agreed to expand its strategic cooperation with Renault SA’s (RNO.PA) Brazilian subsidiary for the development and production of zero- and low-emission vehicles.

As part of the agreement, the parent Geely will invest in Renault Brazil and become a minority shareholder, gaining access to localized production, service networks, and distribution channels.

Geely Holding is Geely Auto’s primary indirect shareholder, holding approximately 39% of its issued share capital. Geely Auto said that it is not a contracting party to the proposed transaction in Brazil. However, considering the potential synergies with Renault and the significant growth opportunities in the Latin American market, the company said it is actively exploring various options to participate in the transaction.

On Feb. 14, Geely Auto’s Zeekr (ZK.US) new energy vehicle (NEV) brand completed its previously announced acquisition of a majority stake in Geely Auto’s Lynk & Co. premium car brand. Following the transaction, Zeekr and Geely Auto hold 51% and 49% of Lynk & Co, respectively, while Volvo, the former joint venture partner, has fully exited. The company first announced the internal strategic shareholder shuffling in mid-November last year, completing the acquisition in just three months.

By Lee Shih Ta

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