Geely Automobile Holdings (HKG: 0175) and Zeekr Group (NYSE: ZK) have officially signed the final merger agreement after Geely proposed to take Zeekr private two months ago. The merger agreement prices Zeekr at $26.87 per ADS, up from the initial proposed price of $25.66. The merger is expected to be completed in the fourth quarter of 2025, with Zeekr delisting from the NYSE.
Under the agreement, Geely will acquire all Zeekr shares not already held by it, offering Zeekr shareholders the option to receive payment in cash or through a share swap for Geely shares. Zeekr will continue as the surviving entity and become a wholly-owned subsidiary of Geely.
Zeekr shareholders can choose to receive $2.687 in cash or 1.23 shares of newly issued Geely common shares for each Zeekr share. For ADS holders, each ADS represents 10 ordinary shares, and they may receive $26.87 in cash per ADS or exchange it for 12.3 newly issued Geely shares.
The higher acquisition price aims to address concerns raised by some investors, including five early investors in Zeekr who felt that Geely’s initial offer undervalued the company. Founded in March 2021, Zeekr launched its first model, the Zeekr 001, in April 2021, and listed on the NYSE in May 2024.
Geely’s acquisition of Zeekr is part of Zhejiang Geely Holding Group’s strategy to integrate its resources. This move is a significant step in Geely Holding’s implementation of the “Taizhou Declaration” and its “One Geely” strategy to enhance strategic execution efficiency, innovation capabilities, and profitability.
Overall, the merger between Geely and Zeekr is expected to create greater value for all shareholders of the combined entity. Stay tuned for further updates as the merger progresses towards completion in the fourth quarter of 2025.
