Geely expects to close Volvo deal in third quarter

China's Zhejiang Geely Holding said Thursday it expected to close its acquisition of Sweden's Volvo Cars in the third quarter after the European Commission cleared the takeover earlier this week.

"We feel very relieved at the approval," Geely said in a statement, adding the transaction should be completed by the end of September.

Geely, which acquired Volvo in March, has said it will spend 2.7 billion dollars on the deal, which includes the original price tag of 1.8 billion dollars plus 900 million dollars in working capital to improve the brand.

The European Union's competition watchdog on Tuesday cleared the takeover of Volvo Cars by Geely and the regional investment fund Daqing.

Geely has said it plans to expand Volvo's presence in China, now the world's largest car market.

The Chinese company acquired the loss-making Swedish brand -- known for its sturdy family-friendly vehicles -- from Ford Motor Co., which had owned it for a decade.

Geely has become one of China's largest private car makers since launching its auto manufacturing business in 1997.