Geely Automobile will take its electric vehicle unit Zeekr private in a deal valuing the company at $6.83 billion.
The move is part of Geely’s plan to streamline its structure and focus on efficiency in a competitive EV market.
Geely will buy the remaining shares it does not already own for $2.687 per share, or $26.87 per American depositary share. The offer represents an 18.9% premium over Zeekr’s last closing price on May 6.
The deal is expected to close in the fourth quarter.
Geely currently owns about 62.8% of Zeekr. The company first made an offer in May valued at $2.2 billion and has now raised that to about $2.4 billion.
Zeekr went public in the U.S. in May 2024 with a valuation of $6.8 billion, becoming the first major Chinese listing in the U.S. since 2021. Founded in 2021, Zeekr was launched as Geely’s premium EV brand and features the group’s key technologies, including EV platforms and battery systems.
The decision to take Zeekr private follows a wider shift in strategy at Geely Holding, which has moved away from overseas acquisitions and is now focused on cutting costs and improving operations. The company has reorganized its business into two main groups: Geely Auto for the mass market and Zeekr Group for the premium segment.
In March, Geely merged three units working on digital cockpit systems into a single team of 2,000 engineers to improve development and efficiency.
