China’s Geely is officially bringing its luxury EV startup Zeekr private
In a pivotal move set to reshape the electric vehicle landscape, Chinese automotive behemoth Geely Auto has officially declared its intent to take its luxury EV subsidiary, Zeekr, private. This strategic decision comes just over a year after Zeekr’s highly anticipated debut on the New York Stock Exchange, signaling a significant recalibration in response to evolving global economic and geopolitical pressures.
The impetus for Zeekr’s delisting from U.S. exchanges crystallized following an offer by Geely two months prior. This period was notably influenced by former President Donald Trump’s earlier threats in the year to delist Chinese companies from U.S. stock markets. Such geopolitical tensions underscore Geely’s likely motivation to consolidate its control over Zeekr, shielding it from potential future market volatility linked to international relations.
Under the terms of the impending merger, Zeekr shareholders are presented with a choice: receive $2.69 in cash for each Zeekr share, or opt for 1.23 newly issued Geely shares. For holders of Zeekr American Depositary Shares (ADSs), each representing 10 Zeekr shares, the offer translates to either $26.87 in cash or 12.3 Geely shares, which will be delivered as Geely ADSs. This revised offer marks a slight increment from Geely’s initial proposal made in May, indicating a potentially strengthened commitment or refined valuation for the privatization.
While the majority of investors will have the flexibility to select between cash or stock, it is specified that certain Hong Kong retail investors will receive cash by default, streamlining the process for this particular investor segment. The merger has already received the necessary approval from Zeekr’s board and is anticipated to conclude in the fourth quarter of 2025, firmly re-establishing Zeekr under private ownership within the Geely umbrella.
A crucial question that emerges from this privatization is its potential ramifications for Zeekr’s innovative partnership with Waymo. This collaboration is dedicated to developing and deploying purpose-built robotaxis for large-scale operations across the United States. Waymo is expected to launch its Zeekr-engineered vehicles in the Bay Area this year, with some units already observed undergoing rigorous testing on the busy streets of San Francisco, underscoring the advanced stage of their joint venture.
The long-term effects of Zeekr’s return to private status on its deal with Waymo remain subject to clarification. Industry observers will be keenly monitoring how this significant change in corporate structure influences the trajectory of this high-profile autonomous vehicle partnership, especially as it moves closer to widespread deployment in major American metropolitan areas.
