Geely Automobile is set to take its premium electric vehicle unit, Zeekr, private at a $6.83 billion valuation. Geely will acquire the remaining stake for $2.687 per share, representing an 18.9% premium to Zeekr’s last close. The deal is expected to close in the fourth quarter.

Zeekr’s U.S. IPO in May 2024 valued the company at $6.8 billion, marking the first major Chinese listing in the U.S. since 2021. Founded in 2021, Zeekr was launched as Geely’s premium electric vehicle brand, showcasing flagship technologies.

Geely has raised its initial offer of $2.2 billion to around $2.4 billion to acquire the remaining stake in Zeekr. This move comes as part of Geely Holding’s strategic pivot towards operational efficiency and cost reduction in response to market pressures.

Geely has reorganized its operations into Geely Auto and Zeekr Group, focusing on mass-market and premium segments respectively. The company consolidated three units into a single engineering team to enhance efficiency and innovation in March.

The deal highlights Geely’s shift away from aggressive global acquisitions towards operational efficiency. This move is in response to margin pressures and intense price competition in China’s electric vehicle sector, positioning the company for future growth.

Read more at Yahoo Finance: Chinese carmaker Geely to take Zeekr unit private at $6.83 billion valuation