China's Geely On Track to Buy Volvo

Chinese automaker Zhejiang Geely is reportedly on track to buy Ford's Volvo unit, and could sign a deal worth about $1.8 billion as early as Sunday.

Author:: Andrea Tse
Publish date:: Mar 23, 2010 7:47 AM EDT

NEW YORK (

TheStreet

) -- Chinese automaker

Zhejiang Geely

is reportedly on track to buy

Ford's

(F) - Get Report

Volvo unit, and could sign a deal worth about $1.8 billion as early as Sunday,

Reuters

reports.

Another $750 million working capital is being raised for Volvo, the

Financial Times

reports. Roughly $500 million to $800 million of financing for the deal will be provided by the European Investment bank, backed by the Swedish and Belgian governments; another $500 million will be provided by Swedish banks; the rest will be provided by Chinese banks, local governments, and Geely, according to

FT.

There is talk that the discussions could face some delays due to financial and technical difficulties at Geely, though a spokesman tells

Reuters

that "twists and turns" in complex deals are normal.

-- Reported by Andrea Tse in New York

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