Geely to take Zeekr unit private at US$6.83 billion valuation

[BEIJING] Geely Automobile will take its premium electric vehicle unit Zeekr private at a US$6.83 billion valuation, as the Chinese automaker streamlines its business and sharpens its competitive edge.

Under the agreement, Geely will acquire the remaining stake it does not already own for US$2.687 per share, or US$26.87 per American depositary share, the companies said in separate statements on Tuesday (Jul 15).

The offer, which comes just over a year after Geely took the EV brand public in the US, represents an 18.9 per cent premium to Zeekr’s last close on May 6. The transaction is expected to close in the fourth quarter.

Geely already owns about 62.8 per cent of Zeekr and initially offered US$2.2 billion in May. It has now raised that to around US$2.4 billion.

Zeekr’s US IPO in May 2024 – which valued the company at US$6.8 billion – marked the first major Chinese listing in the US since 2021.

Founded in 2021, Zeekr was launched as Geely’s premium electric vehicle brand, showcasing the group’s flagship in-house technologies-from EV architecture to battery systems.

The deal also underscores Geely Holding’s broader strategic pivot away from its aggressive global acquisition streak.

The company is now focused on operational efficiency and cost reduction, responding to margin pressures and a deepening price war in China’s electric vehicle sector.

As part of its overhaul, Geely has reorganized its operations into two main arms – Geely Auto and Zeekr Group – targeting the mass-market and premium segments, respectively.

In March, it consolidated three separate units developing digital cockpit systems into a single 2,000-strong engineering team to boost efficiency and innovation. REUTERS