The Trump’s Trade War has even gone on stalling one of the prominent automobile companies of Europe, Volvo as their parent company Geely has delayed Sweden-based company’s IPO plans. Geely’s plan of pausing the IPO plan came in wake of Trump’s trade war as the US is still on the deciding about imposing fresh tariffs on $200 billion of Chinese goods. The initial public offering has been delayed by the China-based owner Geely as it can affect the valuation of Volvo.
The automobile company Volvo has been making big name across the globe, most prominently with huge sales in Europe. And with getting the boost of that, Volvo’s IPO would have been the largest in Sweden in last 17 years; it is said to be valued something around $30 billion.
The delay in the IPO plans of Volvo comes in as Trump’s Trade War has caused the bit of uncertainty in the market. The report originally published in Financial Times tells that that Geely, the Chinese company which owns Sweden’s Volvo has backed off from IPO plan as it can hamper the valuation of Volvo.
“Conditions right now are not optimal to give certain upside for the investors,” Hakan Samuelsson, Volvo’s chief executive, told the FT. He added that the listing requires “stable market conditions.”
It should be noted here that Geely is an automobile giant, which is the third most popular in China and also own various big companies including British sports car maker Lotus, and also manufacturers London Black Cabs. Geely’s owned Volvo takes the US as one of its much potential markets, with opening $1.1 billion factory in Charleston, South Carolina this year, this Sweden-based company vows to rise in the US as it is the place where it has got 16% of sales last year.
Amid all that, Geely looks in no mood to compromise over the valuation of Volvo as Trump’s Trade War can seriously affect that.