Zeekr Group will be removed from New York Stock Exchange with merger completion expected by the of the year.
Geely Automobile Holdings has finalised its acquisition of Zeekr Group at an increased valuation of $26.87 per American Depositary Share (ADS), up from its initial $25.66 offer.
The merger, expected to complete in Q4 2025, will see Zeekr delist from the New York Stock Exchange and operate as Geely’s wholly-owned subsidiary.
Shareholders may opt for cash payments or share swaps, receiving either $2.687 per ordinary share or 1.23 Geely shares per Zeekr share.
This revised deal follows concerns from early investors about the initial valuation and forms part of Geely’s broader strategy to consolidate its electric vehicle operations.
The updated terms represent an 18.9 percent premium over Zeekr’s closing ADS price on 6 May 2025 and a 25.6 percent premium over its 30-day volume-weighted average price prior to the initial proposal.
This adjustment appears designed to address dissatisfaction among Zeekr’s early backers, including five investors who participated in the company’s 2021 Series A funding round that valued Zeekr at $9 billion.
These investors had reportedly expressed concerns that Geely’s original $6.5 billion valuation underestimated the premium EV maker’s worth.
Zeekr, established in March 2021 as Geely’s upmarket electric vehicle brand, has been a key component of the Chinese automaker’s push into the premium EV segment.
The brand made its NYSE debut in May 2024, following in the footsteps of Chinese EV peers Nio, Li Auto and XPeng.
The acquisition forms part of Zhejiang Geely Holding Group’s “One Geely” strategy, outlined in its Taizhou Declaration, which seeks to streamline operations across its automotive portfolio.
Following completion of the merger, Geely aims to enhance operational efficiency and innovation capabilities across its EV operations.
The consolidation will provide Zeekr with greater access to Geely’s manufacturing expertise and technological resources while allowing the parent company tighter control over its premium EV strategy.
This move comes as Chinese automakers increasingly consolidate their EV operations to improve competitiveness in a crowded market.
The deal mirrors similar restructuring efforts by other major Chinese automotive groups seeking to optimise their electric vehicle portfolios.
For Zeekr, becoming a wholly-owned subsidiary may accelerate development of next-generation models and expansion into international markets, particularly Europe where the brand has already begun establishing a presence.
The transaction’s completion in late 2025 will mark a significant milestone in Geely’s evolution as a major force in premium electric mobility.
