London black cab maker Geely buys stake in Volvo trucks from Cevian Capital

by

Geely already owns Volvo cars (Source: Getty)

Chinese firm Geely, the maker of London's iconic black cabs and the owner of Volvo cars, has snapped up a stake in the Volvo truck business.

It has bought up an 8.2 per cent stake in the Swedish company from activist investor Cevian Capital, giving it 15.6 per cent of voting rights.

Volvo's car and truck business were separated in 1999 when the former was sold to Ford. Geely acquired the car business in 2010.

Read more: The company making London's black cabs has bought a flying car startup

"We are delighted to have reached agreement with Cevian to acquire its holding in AB Volvo, making us the largest shareholder by capital in a company that leads the world in many aspects of commercial vehicle development, manufacturing and sales," said Geely Holding chairman Li Shufu.

Geely bought up legendary British car maker Lotus earlier this year and a US startup developing flying car technology.