Shanghai (ZXZC)- Zhejiang Geely Holding Group announced on Wednesday that it has reached agreement with the European investment firm Cevian Capital and that the Chinese company will acquire Cevian’s 8.2 percent stake in AB Volvo. After the deal, Geely will be the controlling shareholder of AB Volvo and has 15.6 percent voting rights, the second biggest after the investment firm Industrivarden.

Both parties didn’t disclose the specific value of this deal, but said that the deal is still subject to the approval of relevant departments. AB Volvo, headquartered in Sweden, is a global leading manufacturer of trucks, buses, construction equipment and industrial engines. 

Li Shufu, chairman of Zhejiang Geely Holding Group, said that the company will take advantage of its successful cooperation experience with Volvo Cars and respect AB Volvo’s culture as well as supporting the work of Volvo’s board and its management.

Li Donghui, CFO and executive vice president of Zhejiang Geely, expects two companies will explore the possibility to cooperate in frontier domains such as electrification, autonomous vehicle technology, vehicle connectivity. Geely will make full use of its marketing experience in China to help Volvo expand its global business.