Chinese automotive giant Geely Auto has just announced that it will take its luxury electric vehicle (EV) subsidiary, Zeekr private. This development follows Geely’s initial proposal to privatize Zeekr two months ago and comes as a response to growing concerns over U.S. regulatory threats, particularly former President Donald Trump’s warnings about delisting Chinese stocks from American exchanges.
Zeekr’s first day on the New York Stock Exchange was more than a year ago at this point. Since then, it has been making waves for its groundbreaking approach to EVs. As part of the privatization deal, owners of Zeekr American depositary shares (ADSs) will be treated to a thrilling option. They can choose between receiving $26.87 in cash or 12.3 newly issued Geely shares, each share representing ten underlying Zeekr shares. At the same time, current Zeekr shareholders are set to get $2.69 cash per share or 1.23 newly issued Geely shares.
It still requires approval from Zeekr’s board, which has already approved the merger. It is scheduled to wrap up in the Q4 of 2025. This crafty play will significantly increase Zeekr’s operational leeway. In turn, the business is now able to strategically plan its product line-up and manufacturing within the fiercely competitive global EV market.
Zeekr is supposed to be the flagship of Geely’s privatization efforts. It has collaborated with Waymo to produce purpose-built robotaxis for large-scale deployment across the United States. Meanwhile, Waymo is preparing to deploy its Zeekr vehicles to the Bay Area later this year. Many of these vehicles have already been seen testing on the streets of San Francisco.
The EV market is highly dynamic and changing every day. As Zeekr is taken private, Geely’s hope is to increase the brand’s flexibility and ability to grow in an increasingly unpredictable regulatory landscape. This decision is indicative of a broader trend among corporations. They are determined to overcome the challenges of an increasingly competitive global market by putting innovation and product development first.
