Updated from 12:21 a.m. EST
DEARBORN, Mich. (
confirmed Wednesday that all "substantive commercial terms" for the sale of
Zhejiang Geely Holding Group
have been settled.
Ford and Geely anticipate a definitive sale agreement to be signed in the first quarter of 2010, with the closing of the sale likely to occur in the second quarter.
"The prospective sale would ensure Volvo has the resources, including the capital investment, necessary to further strengthen the business and build its global franchise, while enabling Ford to continue to focus on and implement its core ONE Ford strategy," Ford said, in a statement.
Ford said it doesn't intend to retain a stake in Volvo once the sale is completed.
Ford said it would provide further details once the deal is signed.
Geely was tapped by Ford as the "preferred bidder" for Volvo in late October.
Reports have Geely offering about $2 billion for Volvo, less than one-third what Ford paid for the Swedish automaker a decade ago,
Geely, one of China's biggest auto makers, is financing the bid for Volvo with a combination of cash, bank loans and funds from a small number of investors, a person familiar with the situation told the
Wall Street Journal
-- Written by Joseph Woelfel in New York.
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