Zeekr, the premium electric vehicle (EV) subsidiary of Geely Holding Group, has confirmed its acquisition of a controlling 51% stake in Lynk & Co, marking a significant shift in the ownership structure of the electric vehicle brand. The deal, valued at approximately $2.5 billion, will see Zeekr purchase a 20% stake in Lynk & Co from Geely Holding for RMB 3.6 billion ($500 million) and a 30% stake from Volvo Cars for RMB 5.4 billion.
Lynk & Co, founded in 2017 as a joint venture between Geely Auto and Volvo Cars, has undergone significant changes in its ownership as part of a broader strategy by Geely to streamline its operations. Under the new agreement, Zeekr will become the majority shareholder, while Geely’s Ningbo Geely subsidiary will retain a 49% stake. Volvo Cars, which has been a minority shareholder since Lynk & Co’s inception, will divest its 30% share, with the transaction expected to close in the first quarter of 2025.
The deal will be financed through a combination of Zeekr’s cash reserves and external financing, with a capital injection also taking place. Lynk & Co will increase its registered capital, with Zeekr subscribing for the entire increase at a price of RMB 367,346,940.
This restructuring is aligned with Geely’s broader strategic focus on the rapidly evolving new energy vehicle (NEV) market. According to Geely, the integration of Lynk & Co under the Zeekr brand is part of its Taizhou Declaration, a move aimed at reducing internal competition, optimizing resources, and focusing on key areas of growth. Despite the divestment, Volvo Cars will continue to cooperate operationally with Lynk & Co in markets where both companies see strategic benefits.
Zeekr and Lynk & Co’s merger is expected to strengthen their combined position in the electric vehicle sector, with a shared focus on innovation and expanding market presence in the growing NEV space.
