Geely invests RMB 1.833 billion to acquire 3 companies

Shanghai (Gasgoo)-Geely Auto announced on Nov. 7 that its subsidiary Zhejiang Geely Luoyou Engine Co., Ltd. purchased the entire registered capital of three target companies with a total investment of RMB 1.833 billion.

It is stated that one of the target companies, Baoji Geely Engine Co., Ltd. is located at Baoji Industrial Park, Shaanxi Province with the R&D, manufacturing and sales of auto engines and some after-sale parts as its core business. It covers an area of 217,600 square meters and is expected to produce 360,000 engines and the related after-sale parts annually.

Another target company is Zhejiang Yili Auto Parts Co., Ltd. Located at Yiwu Industrial Park, Zhejiang Province, Zhejiang Yili Auto Parts Co. covers a total area of 268,300 square meters with the R&D, manufacturing and sales of auto engines and some after-sale parts as its core business. It is expected to produce almost 400,000 engines and the related after-sale parts annually.

The last target company is Ningbo SZX Automatic Transmission Co., Ltd. It focuses on the R&D, production and sale of transmission and related after-sale parts. It occupies an area of around 142,400 square meters and is expected to have an annual production capacity of 600,000 transmissions and related after-sale parts.

Additionally, on Nov. 7, Zhejiang Geely Luoyou Engine Co., Ltd. signed an agreement with LYNK&CO and Zhejiang Geely Holding Group on powertrain sales. After finishing the acquisition, it will sell the engines, transmissions and related after-sale parts produced by the target companies to LYNK&CO and Zhejiang Geely Holding Group from Jan. 1, 2018 to Dec. 31, 2020. The planned upper limits for powertrain sales of the three target companies are respectively RMB 9.179 billion, RMB 14.556 billion and RMB 15.661 billion.