Geely Automotive has signed a merger agreement to acquire all shares of Zeekr Intelligent Technology to strengthen its position in the luxury electric vehicle market.

Information on the Target

Geely Automotive Holdings Limited (stock code: 0175.HK), a subsidiary of Geely Holding Group, has officially signed a merger agreement with Zeekr Intelligent Technology Co., Ltd (stock code: NYSE:ZK) as of July 15. Through this merger, Geely Automotive will acquire all outstanding shares of Zeekr, which provides shareholders with the option to receive cash or exchange their shares for Geely Automotive stock. This strategic move represents a significant step forward in Geely Holding Group's initiative to consolidate its operations under the 'One Geely' strategy, as highlighted in the Taizhou Declaration.

Since the release of the Taizhou Declaration, Geely Holding Group has resolutely advanced the deep integration and efficient consolidation of its internal resources. This approach aims to eliminate redundant investments and enhance the overall competitiveness of the company. The merger will further boost the strategic execution efficiency, innovation capabilities, and profitability of Geely Automotive, ultimately delivering greater value to all shareholders involved.

Industry Overview in China

The automotive industry in China has experienced significant transformation over the last decade, particularly with the surge in demand for electric vehicles (EVs) and intelligent transportation systems. As a leading global player in automotive manufacturing, China has f