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Geely secures Volvo financing: report

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Geely secures Volvo financing: report
08:58 CET+01:00
The prospective buyers of Sweden-based Volvo Cars, Chinese firm Geely, have confirmed that they have secured the necessary financing for the deal, reports Bloomberg News citing a Geely spokesperson.

Geely Holding Group Co. presented a formal $2.5 billion bid for 100 percent of Volvo Cars back in September after weeks of speculation that they were among the interested parties for the troubled Swedish subsidiary of the US carmaker Ford.

Ford confirmed at the end of October that Geely was its choice of buyer for the firm.

Volvo Group sold its car unit to Ford in 1999 for over $6 billion but the relationship seems destined to be short-lived after Ford announced at the end of last year that it was planning to sell the subsidiary.

Concerns over intellectual-property remain an obstacle to completing the takeover deal however as Ford is set to continue supplying components after a sale.

Similar concerns contributed to the break down of a deal by Beijing Automotive Industry Holding Co.'s to buy General Motors Co.'s Opel unit in July, Bloombergs reports.

Volvo Cars made a loss last year of some 13 billion kronor ($1.85 billion), followed by a loss for the fist six months of 2009 of almost 4 billion kronor.

Geely Group is China's largest private automaker with annual sales projected to exceed 200,000 for the current financial period.

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