Geely Takes Zeekr Private in Major Luxury EV Move
▼ Summary
– Geely Auto is taking its luxury EV subsidiary Zeekr private, just over a year after its NYSE debut.
– The move follows Geely’s offer to privatize Zeekr after U.S. political threats to delist Chinese stocks.
– Shareholders will receive $2.69 cash or 1.23 Geely shares per Zeekr share, with ADS holders getting proportionally higher amounts.
– The merger, approved by Zeekr’s board, is expected to close in Q4 2025, with most investors able to choose cash or stock.
– It’s unclear how privatization will impact Zeekr’s deal with Waymo to build robotaxis for U.S. deployment, currently in testing.
Geely has finalized plans to take its premium electric vehicle brand Zeekr private, marking a significant shift just over twelve months after the company’s high-profile NYSE listing. This strategic move follows months of speculation and comes amid ongoing geopolitical tensions affecting Chinese firms listed on U.S. exchanges.
Shareholders now face a straightforward choice: $2.69 per share in cash or 1.23 newly issued Geely shares for every Zeekr share held. Those owning American depositary shares (ADS) will receive proportionally larger payouts, either $26.87 or 12.3 Geely ADS, reflecting a modest increase from the initial offer made earlier this year. While most investors can select their preferred option, Hong Kong retail shareholders will automatically receive cash payments.
With board approval secured, the transaction is slated for completion by late 2025. The decision raises questions about Zeekr’s existing partnership with Waymo, which plans to deploy custom-built robotaxis across the U.S. Test vehicles have already been spotted navigating San Francisco streets, with a Bay Area rollout anticipated soon. How privatization impacts this collaboration remains uncertain, though industry watchers suggest operational continuity is likely.
Waymo has yet to comment publicly on the development, leaving some details unresolved. Meanwhile, analysts view Geely’s move as part of a broader trend among Chinese automakers to consolidate control amid fluctuating market conditions and regulatory pressures. The deal underscores the growing complexity of global EV strategies as companies balance innovation with financial restructuring.
(Source: TechCrunch)
