Zeekr, a leading electric vehicle (EV) company listed on the NYSE under the ticker symbol ZK, recently made a significant announcement regarding its acquisition plans. The company is set to acquire a controlling stake in Lynk & Co, a notable player in the automotive industry. This move comes as part of Zeekr’s strategic expansion efforts and marks a new chapter in its growth trajectory.
Lynk & Co, established in 2017 as a joint venture between Geely Auto and Volvo Cars, has been a key player in the EV market. With Zeekr’s acquisition of a 51 percent stake in Lynk & Co, the company aims to strengthen its position in the industry and drive further innovation in the EV space.
The acquisition deals involve Zeekr acquiring a 20 percent stake in Lynk & Co from Geely Holding for RMB 3.6 billion ($500 million) and a 30 percent stake in Lynk & Co from Volvo Cars for RMB 5.4 billion. Zeekr plans to fund these acquisitions through a combination of its own cash reserves and external financing.
In addition to the stake acquisition, Zeekr has also entered into a capital injection agreement with Lynk & Co and Ningbo Geely. As part of this agreement, Zeekr will subscribe to all of the increased registered capital of Lynk & Co, resulting in Zeekr holding 51 percent of the shares while Ningbo Geely holds the remaining 49 percent.
The valuation of Lynk & Co following the acquisition stands at approximately $2.5 billion, reflecting the company’s strong market position and growth potential. Volvo Cars, which previously held a 30 percent stake in Lynk & Co, has announced the divestment of its stake to Zeekr for RMB 5.4 billion. This transaction is expected to close in the first quarter of 2025, marking a new phase in Lynk & Co’s future development.
The integration of Lynk & Co under the Zeekr brand is seen as a strategic move by Geely to focus resources on the rapidly changing new energy vehicle (NEV) market. This transition aligns with Geely’s shift from strategic expansion to strategic focus, as outlined in the Taizhou Declaration issued on September 1, 2024.
Overall, Zeekr’s acquisition of a controlling stake in Lynk & Co represents a significant milestone for the company and underscores its commitment to driving innovation and growth in the EV industry. With a strong foundation in place and strategic partnerships in place, Zeekr is well-positioned to capitalize on emerging opportunities and shape the future of mobility.
