Chinese automotive giant Geely has announced plans to privatise its premium electric vehicle subsidiary Zeekr, in a transaction valuing the unit at approximately US$6.83 billion. The move is part of Geely’s broader corporate strategy to streamline its operations and enhance competitiveness in an increasingly saturated EV market.
According to statements released on Tuesday, Geely will acquire the remaining shares of Zeekr it does not already own for US$2.687 per share, equivalent to US$26.87 per American depositary share. This offer represents an 18.9% premium on Zeekr’s last traded price on 6 May. The deal is anticipated to complete in the fourth quarter of this year.
Geely currently holds a 62.8% stake in Zeekr. The company initially proposed a US$2.2 billion buyout in May, which has since been increased to approximately US$2.4 billion.
Zeekr made its debut on the U.S. stock market in May 2024, achieving a valuation of US$6.8 billion and becoming the first major Chinese firm to list in the United States since 2021. Founded in 2021, Zeekr serves as Geely’s flagship premium EV brand, designed to showcase its proprietary technologies in electric vehicle architecture and battery systems.
The planned buyout reflects a shift in Geely Holding’s strategic direction. The group, once known for its ambitious global acquisition spree, is now prioritising operational efficiency and cost control. The pivot comes in response to mounting margin pressures and an intensifying price war in China’s domestic EV market.
As part of its corporate restructuring, Geely has realigned its operations into two core divisions: Geely Auto, targeting the mass-market segment, and Zeekr Group, which will continue to focus on premium offerings.
In March, Geely further consolidated its internal technology development efforts by merging three separate business units working on digital cockpit systems into a unified 2,000-strong engineering team, with the aim of driving both efficiency and innovation across its product lines.
-Reuters
