Geely Auto acquires equity interest in global OEM and forms joint venture
Client(s) Zhejiang Geely Holding Group Co., Ltd.
Jones Day is advising Geely Automobile Holdings Limited ("Geely Auto", Stock Code: 0175.HK) on its agreement with a global OEM to establish a manufacturing joint venture in Valencia, Spain. The transaction value is approximately €221 million.
On July 23, 2026, Centurion Industries Limited, a wholly-owned subsidiary of Geely Auto, entered into a share purchase agreement with a global OEM, pursuant to which Geely Auto agreed to acquire a 34% equity interest in the subsidiary of a global OEM for a consideration of approximately €221 million. Upon completion, the target will be owned 66% by the global OEM and 34% by Geely Auto. Completion is subject to the satisfaction of a number of conditions precedent, including the obtaining of relevant regulatory clearances and the completion of an internal reorganisation of the target.
On the same date, the parties entered into a joint venture agreement to govern the management and operation of the target. Under the joint venture agreement, the target will principally engage in the contract manufacturing and supply of passenger vehicles for the Geely Auto group and the global OEM at the target’s facilities in Almussafes, Valencia, Spain. The Valencia plant — already one of Europe's most productive and advanced automotive plants — is expected to become a shared, high-tech manufacturing hub for both parties following the formation of the joint venture.
Geely Auto is listed on the Main Board of The Stock Exchange of Hong Kong Limited and is principally engaged in the research and development, manufacturing and sale of automobiles, automobile parts and related automobile components. It is one of China's leading proprietary brand automakers. This acquisition and the formation of the joint venture mark another milestone collaboration between Geely and the global OEM. By sharing manufacturing resources and expertise, the parties will generate economies of scale, lower R&D and production costs, and jointly advance the development and production of low- and zero-emission new energy vehicles for the European market. The transaction not only provides Geely Auto with immediate access to an established localised manufacturing platform in Europe, enabling Geely-branded vehicles to be produced locally, but will further accelerate its European localisation strategy and significantly strengthen Geely's market position and competitiveness in Europe.
