Geely to become AB Volvo's largest shareholder

Zhejiang Geely Holding Group will become the largest shareholder of AB Volvo by capital after it agreed to acquire 8.2 percent equity and 15.6 percent voting rights in the Swedish manufacturer of trucks, buses, construction equipment and engines.

In a deal with Cevian Capital, Geely has agreed to buy all of its 88.47 million A shares and 78.77 million B shares in AB Volvo, which is subject to regulatory approval, the Chinese carmaker said in a statement on Wednesday.

Geely did not disclose the value of the transaction, which will make it the second-largest owner of AB Volvo by voting rights after investment firm Industrivarden.