The transaction, including expected converted investments by investors AMF and Folksam, was seen resulting in a free float of about 19.5% to 24.0%, Volvo says
"Of course this will cost money but ... we see this as a long term investment," she said, adding the company expected "positive outcomes, that we attract more diverse talents, (and) that we also become a more attractive company."
Geely Automobiles and Volvo Cars that they would perserve with their existing separate corporate structures after "a detailed review of combination options".
The new entity, expected to become operational this year, will provide engines, transmissions systems and petrol-electric hybrid systems for use by both companies as well as other automakers.