China's Zhejiang Geely Holding Group is set to become the largest shareholder in AB Volvo after it agreed to buy the 8.2% stake held in the Swedish truck and bus maker by Cevian Capital, according to reports in China.
Geely already controls Sweden's Volvo Car Group, which it acquired from Ford Motor Company in 2010.
The deal, if approved by regulators, will also give Geely 15.6% of the voting rights in AB Volvo – second only to Swedish investment firm Industrivarden.
Geely is looking to acquire Cevian's entire holding of 88.47 million A shares and 78.77 million B shares in AB Volvo for an undisclosed fee.
Geely chairman Li Shufu said his company "will support AB Volvo's board of directors and the management in their continued execution of the current strategy", if the acquisition gets approved.
Geely executive vice-president Daniel Donghui Li said his company would share with AB Volvo its knowledge of the Chinese market and key R&D capabilities such as powertrain electrification, autonomous driving and connectivity.