Geely to buy Volvo for $1.8 billion

Geely pulls off the largest overseas acquisition by a Chinese carmaker, but will face tough challenges in absorbing the Swedish brand.

Zhejiang Geely's $1.8 billion acquisition of the Volvo brand from Ford Motor Company epitomises how growing Chinese companies are setting a new order for global business and how the Chinese government is playing its role in this.

Zhejiang Geely is one step closer to its dream of owning an international luxury brand and getting access to world-class technology. The company entered into a formal sale and purchase agreement with Ford on Sunday to buy its Swedish brand in the largest overseas acquisition by a Chinese auto company, but how well Geely will handle the world's best known premium car brand remains to be seen.

The deal is expected to be completed in the third quarter...

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