Chinese carmaker Geely has received the European Commission's approval for its proposed acquisition of Sweden's Volvo Cars.
Privately owned Zhejiang Geely Holding has teamed up with China's state-owned investment firm Daqing to buy the iconic car brand from Ford for £1.2 billion.
EU's anti-trust regulators have said the deal is unlikely to give either company an unfair edge over rivals, since cars made by Geely are hardly sold in the European market while Volvo has limited presence as an auto parts supplier.
The purchase is widely regarded as a huge step forward for China's automotive industry and a significant boost for Geely in the world's biggest car market.
Besides Volvo's huge brand value, Geely will also have access to advanced technology and explore the European market. The carmaker said it plans to invest an additional £596 million to expand production and return Volvo to profits.
The EU's executive said its approval would not affect any decision it could make on European state subsidies for Volvo.
Geely, meaning "lucky" in Chinese, is a privately run company that has gradually built its business selling cars, motorcycles and scooters with little government support.
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