Geely Auto Plans to Acquire a 34% Stake in a Spanish Target Company

According to Jin10, Geely Auto announced that its subsidiary Geely SPV, Ford NL, the target company, Ford’s parent company, and the company signed a share purchase agreement on July 23. Geely SPV conditionally agreed to buy, and Ford NL conditionally agreed to sell, a 34% stake in the target company for 221 million euros, subject to customary closing account adjustments based on the target company’s net debt, working capital position, and asset scope. Under the agreement, the company agreed to guarantee Geely SPV’s obligations, and Ford’s parent company agreed to guarantee the respective obligations of Ford NL and the target company. After completion, Ford NL and Geely SPV will own 66% and 34% of the target company, respectively. The target company will not become a subsidiary of the company, its financial results will not be consolidated into the group’s financial statements, and the company expects its investment to be accounted for as an associate using the equity method.