Cross-Border Acquisitions by Chinese Companies: Geely’s Acquisition of Volvo

This case tells the story of the cross-border acquisition of Volvo by a Chinese private enterprise, Geely. It describes the entrepreneurial spirit of Geely’s founder, Mr. LiShufu (李书福), his persistence in creating a car manufacturing company, and the rise of Geely as the very first private domestic company in China which had a car manufacturing license. The case also mentions that Geely completed a “backdoor listing” on the Hong Kong Stock Exchange, and its globalization process through a series of cross-border acquisitions. Then, the situation of Geely in 2009, a brief story of Volvo and Geely’s pursuit of Volvo is presented. Meanwhile, Li Shufu’s long-standing dream of being a global player in the automobile industry, and in a more macro background, Chinese companies’ efforts to catapult themselves onto the world stage through mergers and acquisitions, are brought to the attention of the readers for an in-depth analysis.