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China’s Geely moves to take EV startup Zeekr private amid trade war with US
Geely Auto plans to take its luxury EV unit Zeekr private, offering $25.66 per ADS, valuing the company at $6.5 billion. This move comes amid a trade war with the US, as the Trump administration considers delisting Chinese companies. By consolidating control, Geely could better navigate market challenges and protect investments, while Zeekr enhances its relationship with Waymo for a new self-driving vehicle.
Key points
- Geely made a take-private offer for Zeekr due to U.S.-China trade tensions, notably the Trump administration's push to restrict Chinese firms on U.S. exchanges.
- The offer is priced at $25.66 per ADS, reflecting a 14% premium, with an overall valuation of $6.5 billion.
- Geely currently owns 65.7% of Zeekr, needing approximately $2.2 billion to acquire the rest.
- Taking Zeekr private could help mitigate the pressures of operating in the competitive EV market.
- Zeekr delivered 125,250 vehicles in the first four months of 2025, indicating growth but requiring strategic support.
- Zeekr is collaborating with Waymo on a robotaxi project, but the future of this partnership remains uncertain with potential privatization.
Why it matters
- The ongoing U.S.-China trade war affects various sectors, notably technology and automotive, highlighting geopolitical tensions.
- The trend of de-listing Chinese companies from U.S. markets could influence investor confidence and the global EV landscape.
- With EVs becoming increasingly competitive, manufacturers are exploring mergers and privatizations to secure market position through consolidation.
Geely's move to take Zeekr private amidst U.S.-China trade tensions underscores a strategic response to market pressures, enabling better navigation of the competitive EV landscape while solidifying its partnership with Waymo.