Updated from 10:22 a.m. EDT

Updated to include deal price

GOTHENBURG, Sweden (

TheStreet

) -- China's

Zhejiang Geely Holding Group

has signed a binding agreement to buy Volvo Cars from

Ford

(F) - Get Report

for $1.8 billion.

The deal gives Geely control of a well-established global brand. Most of Volvo's sales are in Europe and North America.

Representatives for Geely and Ford presented the deal in a news conference at Volvo's headquarters in Gothenburg, Sweden, according to an

Associated Press

report.

Geely's chairman, Li Shufu, and Ford CFO Lewis Booth signed the agreement, which is expected to be completed in the third quarter, the report said.

The transaction includes a $200 million note, with the remainder in cash, Booth said, according to the report.

"We think it's a fair price for a good business, and yes, we're happy with the deal we've achieved with Geely," Booth was quoted saying by the report. He added that Ford believes that, under Geely, "Volvo can continue to build its business and return to profitability."

Volvo employs nearly 20,000 workers, most of them in Sweden.

Like other U.S. automakers, Ford was hit hard by the global financial crisis. It has been trying to sell Volvo since late 2008 in order to focus on its core Ford, Lincoln and Mercury brands, the

AP

noted.

A purchase by Geely was widely expected after Volvo in October

confirmed

that the Chinese automaker was the preferred buyer.

Ford shares gained 6 cents Friday to close at $13.86.

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This article was written by a staff member of TheStreet.com.