Geely Automobile: Concludes a joint venture agreement with Renault, intending to strengthen its brand influence in Brazil and expand its market coverage – Passionategeekz

Passionategeekz On June 20, Geely Auto announced on the Hong Kong Stock Exchange today that the company, Geely Holdings, wholly-owned subsidiary GA (SGP), Geely Holdings wholly-owned subsidiary GH (SGP), Renault and the joint venture entered into a capital contribution agreement and a joint venture agreement.

Passionategeekz learned from the announcement that GA (SGP) has conditionally agreed to contribute capital to the joint venture through the all issued share capital and cash contribution of its wholly-owned subsidiary in exchange for common shares, warrants and convertible preferred shares of the joint venture. Meanwhile, GH (SGP) conditionally agreed to contribute capital to the joint venture with all issued share capital of its wholly-owned subsidiary in exchange for common shares of the joint venture. After the settlement, the joint venture will be owned by Renault, GA (SGP), GH (SGP) and an independent third party respectively 73.57%, 21.29%, 5.11% and 0.03% rights and interests. The CEO of the joint venture will be appointed by the joint venture board on Renault’s recommendation.

Geely Automobile said that through the agreements cooperated with Renault,Can strengthen brand influence in Brazil and expand market coverage. This cooperation with Renault allows the group to enter Brazil, the largest automobile market in Latin America. As a shareholder of the joint venture, the group can make full use of the joint venture’s mature business capabilities and comprehensive ecosystem in Brazil, including a solid distribution infrastructure and a wide network of dealers covering the country to provide sales and after-sales services. These advantages will help accelerate the expansion of the group’s products’ market share in Brazil.

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