ZEEKR Completes Acquisition and Capital Injection in Lynk & Co
Deal News | Feb 16, 2025 | EIN
ZEEKR, a Chinese electric vehicle brand, has finalized its acquisition and capital injection of Lynk & Co, resulting in a significant restructuring. ZEEKR now holds a 51% stake while Geely Automobile retains the remaining 49%. The merger forms Zeekr Intelligent Technology Holding Limited. The integration maintains dual-brand operations, with ZEEKR focusing on luxury technology vehicles and Lynk & Co on high-end new energy cars. The synergy is expected to reduce overlapping investments, cut development costs, and improve decision-making efficiency. Plans include launching five new products, achieving sales of 710,000 units annually, and expanding global market presence via Volvo's resources. This strategic move aligns with industry trends towards collaboration to navigate competition and technological advancements.
Sectors
- Automotive
- Mergers & Acquisitions
- Technology
Geography
- China – ZEEKR and Lynk & Co are both Chinese automotive brands and the acquisition took place in China.
- Global – The newly formed company has ambitious plans for global market expansion, including leveraging Volvo’s overseas resources.
Industry
- Automotive – The article discusses the acquisition and integration of two automotive brands, ZEEKR and Lynk & Co, focusing on electric vehicles and new energy technologies.
- Mergers & Acquisitions – The article is centered around a significant acquisition, with ZEEKR acquiring a 51% stake in Lynk & Co, involving a strategic integration plan.
- Technology – Integration aims to leverage AI and other technological innovations to build a competitive automotive consortium.
Financials
- 51% – Percentage of Lynk & Co acquired by ZEEKR.
- CNY 300,000 – The market focus price range for ZEEKR's luxury technology vehicles.
- CNY 200,000 – The market focus price range for Lynk & Co's high-end new energy vehicles.
- 710,000 units – Annual sales target post-merger for the combined company.
- 5% to 8% – Expected reduction in material costs due to the integration.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ZEEKR | Acquirer | Company | A Chinese electric vehicle brand that acquired a controlling stake in Lynk & Co. |
| Lynk & Co | Target Company | Company | A new energy automotive brand that was acquired by ZEEKR. |
| Geely Automobile | Partial Owner | Company | Maintains a 49% stake in Lynk & Co after the acquisition by ZEEKR. |
| Zeekr Intelligent Technology Holding Limited | Merged Entity | Company | The new company formed from the merger of ZEEKR and Lynk & Co. |
| Conghui An | CEO | Person | CEO of ZEEKR Technology Group, leading the integration strategy. |
| Jing Yuan | CFO | Person | CFO of ZEEKR Technology Group, discussing economic advantages post-merger. |