Geely Continues to Accelerate on Potential Merger With Volvo
The stock in the Hong Kong-based car manufacturer, Geely Automobiles Holdings Ltd. (OTC: GELYF) continues to rise on its potential collaboration with AB Volvo. At Tuesdays close, Geely rose nearly 4% higher to $1.87 per American depositary share.
In a statement on Monday, Volvo said that the new partnership would construct a strong global group, which would boost financial and technological synergies between the two parties. The news helped Geely reach high of $1.81 per ADS on Monday, up 4% from Friday's close. Today, Geely hit a high of $1.93 per ADS.
The combined company, should the merger be completed, would have access to the global market through through the Hong Kong Stock Exchange.
Going forward, Geely now hopes to achieve market appreciation after hitting a peak in 2018. Since June 2018, Geely has not exceeded trading of $3.00 per ADS or more. Earlier that month, it reported that its total sales volume was down 4% from April 2018.
In January, Geely reported that its sales volume for December reached 130,036 units, up 39% year-over-year.
In business for more than 30 years, Geely has manufacturing plants in Luqiao, Linhai, Ningbo/Cixi, Chunxiao, Baoji, Jinzhong, Xiangtan, Jinan and Chengdu. It also exports its products to the Middle East, Europe, and Africa
Geely has been partnered with Jinhua-based electric vehicle maker, Kandi Technologies Group Inc. (Nasdaq: KNDI) since 2013. Last month, Kandi's affiliate unveiled its first production EV in front of Geely at a ceremony in Rugao, Jiangsu province.
Geely closed at $1.87 on Tuesday.