Geely Automobile said on Tuesday it will take its premium electric vehicle (EV) unit Zeekr private in a deal valuing the company at $6.83 billion, as the Chinese automaker restructures its operations to improve efficiency and strengthen its position in an increasingly competitive EV market.
Geely will acquire the remaining shares of Zeekr that it does not already own at $2.687 per share, or $26.87 per American depositary share (ADS), representing an 18.9% premium over Zeekr’s closing price on May 6, according to separate statements released by both companies. The transaction is expected to close in the fourth quarter of this year.
Geely currently holds around 62.8% of Zeekr and initially made a $2.2 billion offer in May. The revised deal increases the purchase to approximately $2.4 billion, reflecting a higher valuation and commitment to fully integrate the premium EV unit. Zeekr went public in the United States in May 2024, becoming the first significant U.S. listing by a Chinese company since 2021.
The move comes as Geely shifts its focus from overseas acquisitions to streamlining its operations amid tightening margins and intensifying price competition in China’s EV sector. The company has restructured its business into two major divisions—Geely Auto for the mass market and Zeekr Group for premium offerings.
Founded in 2021, Zeekr was launched to showcase Geely’s core EV technologies, including its proprietary architecture and battery systems. “The offer… represents an 18.9% premium to Zeekr’s last close on May 6,” according to the original statement.
As part of its internal reforms, Geely merged three units working on digital cockpit technologies earlier this year into a single 2,000-person engineering team, a move aimed at improving innovation and operational effectiveness across its vehicle lineup.
