A Goldman Sachs private equity fund is investing about USD250m in Geely in a move that could free up capital for a Geely bid for Volvo Cars, according to a report in the Wall Street Journal.

The WSJ cited an unidentified source.

Goldman Sachs Capital Partners’ purchase of Geely convertible bonds and warrants would give it an unspecified minority stake in the carmaker, the report said.

Geely has said that its parent holding company is considering a bid for Volvo with a Swedish  government-backed investment firm.

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