Geely Holding Group announced today that its subsidiary, Geely Automobile, has officially signed a merger agreement with Zeekr Technology, which only went IPO in 2024. Geely Automobile will acquire all Zeekr shares not already held by the company, with the merger expected to be finalised in the fourth quarter of 2025. This move aims to privatise Zeekr, delist it from the New York Stock Exchange.
Under the terms of the agreement, Zeekr shareholders have the option to receive either cash or Geely Auto shares as consideration. For each Zeekr share, eligible holders can choose between 2.687 USD in cash or 1.23 Geely Auto shares. Alternatively, for each Zeekr American Depositary Share (ADS), shareholders can receive 26.87 USD in cash or 12.3 Geely Auto shares (to be delivered in the form of Geely ADSs). The issuance price for each consideration share is 17.15 HKD, representing a premium of approximately 2.4% over Geely’s closing price on the last trading day before the non-binding offer.
Upon completion of the privatisation, Zeekr will become a wholly-owned subsidiary of Geely Automobile. This full ownership is increasing from the current 62.8% (on a fully diluted basis).
Despite being a relatively young brand, Zeekr has shown impressive growth. In the first quarter of 2025, Zeekr Technology (including Zeekr and Lynk & Co brands) delivered a total of 114,011 vehicles, a 21.1% year-on-year increase. The Zeekr brand alone delivered 41,403 vehicles, up 25.2%.
According to Chinese media qbitai, the merger is expected to yield efficiency gains. For instance, the integration of R&D efforts and shared intelligent assisted driving platforms between Zeekr and Lynk & Co has already resulted in a 15% reduction in R&D expenses. This privatisation might allow Zeekr to focus on product development and technological advancements without the short-term performance pressures from investors. For Geely, it means consolidating its intelligent NEV brands under a highly synergistic and efficient platform.
Source: Sina
