Geely announced a strategic merger with Zeekr Technology to enhance operational efficiency and capitalize on electric vehicle market growth in China.

Target Information

The merger between Geely Automobile Holdings Limited and Zeekr Technology is a pivotal development in the digital economy sector in China. On November 14, Geely announced the transfer of an 11.3% stake in Zeekr to its parent company, aiming to increase Geely's ownership in Zeekr to approximately 62.8%. This strategic move is expected to enhance operational synergies between both brands, which have historically focused on different segments of the automotive market. While Zeekr has predominantly specialized in pure electric vehicles, Lynk & Co is building on their expertise in hybrid and fuel-efficient models.

The integration is anticipated to solidify the competitive standing of Geely in the evolving landscape of electric mobility, supporting its objective of reducing related transactions and eliminating market overlap. The consolidation will result in Zeekr holding a 51% stake in Lynk & Co, with the remaining 49% retained by Geely's fully-owned subsidiary.

Industry Overview in China

China's digital economy has witnessed exponential growth, now accounting for a significant portion of the country’s GDP. It encompasses various fields, including e-commerce, cloud computing, and artific