zhangxinyuezhangxinyue ・ May. 8, 2025
Geely Moves to Take Zeekr Private in $2.2 Billion Deal Amid EV Market Shakeup
Geely said Zeekr will be fully merged into Geely Auto upon completion of the deal. "In the face of fierce market competition and an increasingly complex economic environment, we will assess the situation and... continue to promote the integration of our automotive business,"

ZEEKR to Go Public on NYSE in 2024

ZEEKR to Go Public on NYSE in 2024

TMTPOST -- Chinese auto giant Geely Auto has made a $2.2 billion offer to take its electric vehicle unit Zeekr private, just one year after taking the premium EV brand public in the U.S., as it looks to streamline operations and sharpen its competitive edge in a cutthroat market.

Geely is offering $25.66 per American Depositary Share (ADS) of Zeekr, representing a 13.6% premium to Tuesday's closing price. The offer implies a valuation of $6.52 billion for Zeekr, according to Reuters calculations. Shares of Zeekr jumped 11.1% to $25.10 in U.S. premarket trading following the announcement.

The Hangzhou-based automaker currently owns 65.7% of Zeekr's outstanding share capital and would need to pay $2.2 billion to acquire the remaining 34.3%.

Geely said Zeekr will be fully merged into Geely Auto upon completion of the deal. "In the face of fierce market competition and an increasingly complex economic environment, we will assess the situation and... continue to promote the integration of our automotive business," Geely Chairman Li Shufu said in a statement on WeChat, referencing the company's internal "Taizhou Declaration."

The move underscores a broader pivot by Geely Holding — which also owns Volvo and Polestar — from years of acquisition-fueled growth to internal consolidation and cost optimization. Last year, Li called for stronger synergies between brands and a crackdown on internal overlap as part of the Taizhou Declaration, a strategy aimed at boosting efficiency and focus across its automotive empire.

As part of the restructuring, Geely has been reorganizing its business into two core divisions: Geely Auto, serving the mass market, and Zeekr Group, targeting premium EV consumers. In March, the company merged three digital cockpit development units, totaling nearly 2,000 engineers, into a single team to further drive operational efficiency.

Founded in 2021, Zeekr is positioned as Geely's high-end EV marque, built on proprietary platforms and battery technology. The company sold 41,403 vehicles in the first quarter — up 25% year-over-year — and outpaced sales of BYD's premium Denza brand with a six-model lineup.

Zeekr went public on the NYSE in May 2024 with a $6.8 billion valuation — the first major U.S. listing by a Chinese company since 2021, marking a cautious reopening of capital markets amid tense U.S.-China relations.

But geopolitical headwinds have resurfaced. Zeekr was recently named in a letter from two Republican lawmakers urging the U.S. Securities and Exchange Commission to delist 25 Chinese firms, including Zeekr, over alleged military ties. The company has not commented on the letter.

More than 100 Chinese firms remain listed on U.S. exchanges with a collective market capitalization of roughly $1 trillion. However, concerns over forced de-listings have intensified amid renewed trade tensions between Washington and Beijing.

Beijing is currently weighing a U.S. offer to resume trade negotiations amid rising tariffs — including a proposed 145% rate on Chinese EVs — and has published a list of American-made products that may be exempted from China's retaliatory 125% tariffs.

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