Essay: Funding Sources for the Acquisition of Volvo
Sample Essay
The acquisition of Volvo was not too simple as a strategy for the Chinese global automotive business. Initially, the deal between Geely and Volvo remained under negotiations for long and then finally approved for an overall acquisition value of $2.7 billion (Flaherty, Webb, 2010). Geely was financially strained during the deal, and the funding for Volvo’s acquisition was backed by Chinese financial institutions and regional authorities. The strategy behind the funding was to collect funds in an integrated way that may not necessarily put pressure on a single source. These sources were Chinese commercial banks and regional bodies, who were asked to fund the deal because Geely itself was financially strained (The Local, 2010).