Beijing Gives Geely Go-Ahead to Buy Volvo Cars

SHANGHAI - July 29, 2009: Geely Holding Group has been given the go-ahead by China's main economic planning agency on its bid for Ford Motor Co.'s Volvo unit, the Shanghai Securities Journal reports Wednesday.

The report said Geely has received the confirmation letter from the National Development and Reform Commission on oversea acquisitions, becoming the only Chinese automaker that has won official confirmation on such deals.

The Wall Street journal reported in mid-July that Geely is expected to submit a final bid later this month with an offer anticipated to be around $2 billion, citing people familiar with Geely.

The people said the private Chinese automaker has been working for almost three years on its takeover plan for Volvo, and it has hired consultants to advise it and a veteran Chinese finance executive to spearhead the deal.

Another Chinese company, Changan Automobile Group, Ford's manufacturing partner in China, said it would not run for Volvo because of unspecified conditions.