Geely Holding Group has announced plans to reorganise its portfolio by merging its premium electric vehicle brand Zeekr and its sister brand Lynk & Co to create a stronger global entity.
The restructuring aims to streamline product offerings, enhance technological synergies, and boost operational efficiency across the group.
Under the proposed deal, Zeekr, listed on the New York Stock Exchange, will acquire a 51% stake in Lynk & Co through a series of transactions.
This includes purchasing Volvo Cars’ 30% stake and an additional 20% from Geely Holding. Zeekr will increase its shareholding through a capital injection, while the remaining 49% will stay with Geely Automobile Holdings, the group’s primary listed arm.
The deal values Lynk & Co at approximately 18 billion yuan (RM11.2 billion) and is expected to be finalised by June 2025, according to sources familiar with the matter. Geely Automobile Holdings will also raise its stake in Zeekr to about 62.8% to further integrate the brands.
Zeekr will lead innovation in electric and connected vehicle technologies within the group, sharing advancements with other Geely-owned brands, including Polestar. Lynk & Co’s product team has already begun reporting to Zeekr CEO Andy An, with discussions underway to unify shared technologies and components.
Both brands have experienced significant growth. In the first nine months of 2024, Lynk & Co sold approximately 195,600 vehicles, a 40% year-on-year increase. Meanwhile, Zeekr, which launched in 2021, sold nearly 143,000 units, an 81% increase.
Geely chairman Eric Li has called for deeper integration across the group to reduce costs, improve efficiency, and eliminate product overlap. Analysts have noted that Zeekr and Lynk & Co target similar markets, leading to cannibalisation of sales. The merger is expected to resolve these issues by clarifying brand positioning.
