Volvo’s acquisition was certainly done from a friendly perspective. It was in fact a deal between the two parties. Analysts, media experts and other connected sources named it a merger. There are many factors that made this deal take place in friendly conditions. From a Chinese perspective the acquisition was a big deal for its automobile industry.
The acquisition means a lot to the global automobile industry and took this as a threat to the business concerns. From the viewpoint of Chinese automobile industry, the car selling will have a wider scope in the near future with a huge potential of market expansion with all the resources available especially labor. The Volvo deal has a great attraction the automobile industries of emerging economies. As a result of this acquisition, Such transactions represent what may be an important long-term strategy, trending the global car industry (Schuman, 2010).
For Geely the deal to acquire Volvo is a better medium to expand internationally in the global automobile industry. The $1.8 billion deal is not just a monetary investment by Geely, it took them a lot of time and effort to achieve this objective. To get a better and sound command over the expertise and technology, Geely eyed the most popular brand of the European car industry (Schuman, 2010).
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