Geely Auto has solidified its plan to fully acquire ZEEKR, announcing a revised offer that values the remaining shares at approximately RMB 17.2 billion. Under the newly signed merger agreement, Geely Auto will purchase all outstanding ZEEKR shares not currently held, with shareholders given the choice to receive cash or swap their holdings for Geely Auto stock.

The acquisition price has been increased to $2.687 per ordinary share or $26.87 per American Depositary Share (ADS), marking a 4% premium over the initial $2.57 per share proposal disclosed on May 7. This adjustment results in an 18.9% premium over ZEEKR's closing price of $22.59 per ADS on May 6. If all shareholders opt for cash, the total cost will hit RMB 17.2 billion, slightly higher than earlier estimates but reflecting Geely Auto's strong commitment to the deal. Alternatively, selecting stock swaps could alleviate financial strain on Geely Auto, which reported cash reserves of RMB 35.2 billion as of March 31, 2025—down significantly from the previous quarter.

Li Shufu, the primary stakeholder with a 76.75% holding in ZEEKR via entities like GAGK and GHGK, stands to gain substantially from this privatization. Other key executives, including An Conghui and Gui Shengyue, hold smaller stakes, minimizing potential resistance. The transaction, expected to conclude by Q4 2025, will see ZEEKR delist from the New York Stock Exchange, capitalizing on favorable conditions for U.S.-listed Chinese firms returning home.

Synergies from the merger promise significant cost savings: internal projections indicate annual R&D reductions in the billions of yuan, alongside lower expenses in procurement, manufacturing, and administration. This strategic move dovetails with Geely Holding Group's robust performance, where first-half 2025 sales surged 30% year-over-year to 1.932 million vehicles, with electric models driving a 52% penetration rate. Geely Auto's own sales hit 1.409 million units, narrowing the gap with market leader BYD to just 210,000 vehicles. By integrating ZEEKR as a premium tech brand, Geely aims to reclaim its top spot in China's auto market, leveraging unified branding and operational efficiencies to fuel future growth.