GEELY AUTO (00175.HK): Acquires 34% Stake in Ford’s Spanish Plant for EUR221 Million; Establishes JV for Passenger Vehicle Contract Manufacturing

NewTimeSpace News: On 23 July 2026, Geely Auto (00175.HK) issued a voluntary announcement regarding the acquisition of a 34% stake in target company Ford España, S.L. and the formation of a joint venture for passenger vehicle contract manufacturing.

Pursuant to the share purchase agreement, Geely SPV conditionally agreed to acquire and Ford NL conditionally agreed to sell a 34% equity interest in the target company for a consideration of EUR221 million, subject to customary completion account adjustments based on the target’s net debt, working capital and asset scope at closing. The Company has agreed to provide a guarantee for the performance of obligations by Geely SPV, while Ford’s parent entity will guarantee the obligations of Ford NL and the target company.

On the same date, Geely SPV, Ford NL and the target company entered into a joint venture agreement. Post-completion, the target company will operate as a joint venture between the Group and Ford Group, undertaking contract manufacturing of passenger vehicles at the Almussafes plant in Valencia, Spain. The joint venture agreement includes call options and put options over shares in the target company, exercisable only upon specific triggering events.

Following transaction completion, Ford NL and Geely SPV will hold 66% and 34% interests in the target company respectively, and the target will not become a subsidiary of the Company. The acquisition enables Geely to gain direct access to a mature European manufacturing platform and supports its localisation strategy in Europe.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.