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China’s Geely to Buy Just Over a Third of Renault Korea for USD205 Million
Zhang Yushuo
DATE:  May 10 2022
/ SOURCE:  Yicai
China’s Geely to Buy Just Over a Third of Renault Korea for USD205 Million China’s Geely to Buy Just Over a Third of Renault Korea for USD205 Million

(Yicai Global) May 10 -- Geely Automobile Holdings said it has agreed to take a 34 percent stake in Renault Korea Motors for CNY1.4 billion (USD205 million), deepening the partnership between the Chinese and French automakers.

Geely Auto will buy 45.4 million new shares of Renault Korea priced at KRW5,818 (USD4.65) apiece through its unit Centurion Industries, the Hong Kong-listed company said today, adding that the deal will be subject to regulatory approval.

Groupe Renault and Geely Auto’s parent company Geely Holding Group announced in January the setup of a joint venture to develop, make, and sell fuel and smart hybrid Renault-branded vehicles based on the Chinese carmaker’s world-class compact modular architecture and hybrid powertrain technologies.

The models, which are expected to roll off Renault-Samsung Motor’s production line in Busan, South Korea in 2024, will be sold in the Korean and overseas markets.

The stake purchase will enhance the collaboration by the two automakers on future projects, Renault said in a statement today. Both companies are fully committed to Renault Korea and seek to increase their market share in the Asian country.

Renault Korea sold 10,409 cars in the first quarter, up 21 percent from a year earlier, of which 4,464 sold in South Korea and 5,945 overseas. Last year’s sales rose 14.3 percent to 132,760, with nearly 54 percent shipped abroad.

The firm had a net profit of CYN83 million (USD12.4 million) last year, compared with a CNY380 million (USD56.6 million) loss in 2020, as revenue gained 13.5 percent to CNY20.1 billion (USD3 billion). 

Shares of Geely Auto [HKG: 0175] ended today 3.8 percent lower at HKD11.16 (USD1.42) amid a wider market pullback in Hong Kong.

Editor: Futura Costaglione

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Keywords:   Geely,carmaker,Renault Korea Motors