Recently, Volvo Cars announced that they will be acquiring more shares in Polestar, which will increase its shareholding to 49.5 percent.
Volvo Cars established Polestar as a new electric vehicle (EV)-focused brand and owned 50 percent of Polestar until a private placement earlier this year diluted Volvo Cars shareholding in the company. Through this transaction Volvo Cars’ share returns to its previous level of close to 50 percent.
Volvo Cars is acquiring its additional stake from PSD Investment, the private investment company of Li Shufu (Eric), Chairman of both Volvo Cars and its parent Zhejiang Geely Holding Group. PSD Investment will remain the second largest shareholder in Polestar.
Volvo Cars also added that they have no plans to increase its stake further or to consolidate Polestar. The acquisition is scheduled to complete shortly, but is subject to certain conditions.