In a significant move within the electric vehicle sector, Geely Auto, a prominent player in the automotive industry, has announced its decision to take its luxury electric vehicle brand, Zeekr, private. This development comes just over a year after Zeekr made its debut on the New York Stock Exchange, marking a pivotal moment for the company.
The announcement follows Geely’s proposal to privatize Zeekr, which was influenced by recent political tensions regarding the listing of Chinese companies on U.S. exchanges. The decision reflects a strategic shift in response to the evolving market landscape and regulatory environment.
Upon the completion of the merger, shareholders of Zeekr will have the option to receive either $2.69 in cash for each share or 1.23 newly issued shares of Geely. For those holding American depositary shares (ADSs) of Zeekr, which represent ten shares, the offer includes either $26.87 in cash or 12.3 shares of Geely, provided as Geely ADSs. This offer is slightly more favorable than the initial proposal made by Geely earlier in the year.
Investors will have the flexibility to choose between cash and stock options, although certain retail investors in Hong Kong will automatically receive cash. This approach aims to accommodate various investor preferences while ensuring a smooth transition.
The board of Zeekr has already given its approval for the merger, which is anticipated to finalize in the fourth quarter of 2025. This timeline suggests a well-planned approach to the privatization process, allowing for a seamless transition.
However, the implications of Zeekr’s transition to private ownership on its partnership with Waymo, particularly in the development of specialized robotaxis for deployment in the U.S., remain uncertain. Waymo is expected to introduce Zeekr vehicles in the Bay Area this year, with some units already spotted undergoing testing in San Francisco.
As the situation develops, further insights from Waymo are anticipated to clarify the future of this collaboration.
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