Zeekr Group Announces the Closing of Strategic Integrated Transactions

Rhea-AI Summary

Zeekr Group (NYSE: ZK) has announced the completion of previously disclosed Strategic Integration Transactions with Geely entities. The transaction, which was initially announced on November 14, 2024, has resulted in Lynk & Co becoming an indirect non-wholly-owned subsidiary of Zeekr Group. This strategic move marks a significant development for the premium new energy vehicle group.

Positive

• Strategic acquisition of Lynk & Co expanding Zeekr's business portfolio
• Enhanced market position through integration with Geely entities

Negative

• Potential financial impact of acquisition not disclosed
• Non-wholly-owned subsidiary status indicates control over Lynk & Co

Insights

Corporate Finance Analyst

The completion of Strategic Integration Transactions between Zeekr Group and Geely entities represents a pivotal moment in the premium EV landscape. By bringing Lynk & Co under Zeekr's corporate umbrella as an indirect subsidiary, this integration creates a formidable force in the global new energy vehicle market.

The strategic significance of this transaction extends beyond mere corporate restructuring. The integration potentially enables substantial operational synergies across several key areas:

• Manufacturing optimization through shared production facilities and supply chain integration
• Enhanced R&D capabilities by combining both companies' technological expertise
• Expanded market presence leveraging Lynk & Co's established distribution networks
• Strengthened competitive position in the premium EV segment against both traditional automakers and new EV entrants

This consolidation aligns with the broader industry trend of strategic integration among automotive companies, particularly in the EV sector, where scale and technological capabilities are important competitive advantages. The transaction potentially positions Zeekr Group to better compete in the premium EV market segment, particularly important as global markets increasingly shift toward electric mobility.

For investors, this integration could translate into improved operational efficiency and enhanced market competitiveness. The combined entity's strengthened position in the premium EV segment may lead to accelerated market penetration and potentially improved economies of scale. However, the success of this integration will largely depend on effective execution of post-merger integration strategies and the ability to realize projected synergies.

HANGZHOU, China, Feb. 14, 2025 /PRNewswire/ -- ZEEKR Intelligent Technology Holding Limited ("Zeekr Group" or the "Company") (NYSE: ZK), the world's leading premium new energy vehicle group, today announced the closing of Strategic Integration Transactions with Geely entities that was previously announced on November 14, 2024. Following the completion of such transactions, Lynk & Co has become the Company's indirect non-wholly-owned subsidiary.

Capitalized terms not otherwise defined herein shall have the same meaning as defined in the Form 6-K filed with the Securities and Exchange Commission in relation to the Strategic Integration Transactions on November 14, 2024.

About Zeekr Group

Zeekr Group, headquartered in Zhejiang, China, is the world's leading premium new energy vehicle group from Geely Holding Group. With two brands, Lynk & Co and Zeekr, Zeekr Group aims to create a fully integrated user ecosystem with innovation as a standard. Utilizing its state-of-the-art facilities and world-class expertise, Zeekr Group is developing its own software systems, e-powertrain and electric vehicle supply chain. Zeekr Group's values are equality, diversity, and sustainability. Its ambition is to become a true global new energy mobility solution provider.

For more information, please visit https://ir.zeekrlife.com/.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward- looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "future," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

Investor Relations Contact

In China:

ZEEKR Intelligent Technology Holding Limited
Investor Relations
Email: ir@zeekrlife.com

Piacente Financial Communications
Tel: +86-10-6508-0677
Email: Zeekr@thepiacentegroup.com

In the United States:

Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
Email: Zeekr@thepiacentegroup.com

Media Contact

Email: Globalcomms@zeekrgroup.com

 

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SOURCE ZEEKR Intelligent Technology Holding Limited

FAQ

What is the significance of Zeekr's Strategic Integration Transaction with Geely?

The transaction resulted in Lynk & Co becoming an indirect non-wholly-owned subsidiary of Zeekr Group, expanding their presence in the premium new energy vehicle market.

When did Zeekr Group (ZK) complete its Strategic Integration Transaction?

Zeekr Group completed the Strategic Integration Transaction on February 14, 2025, following the initial announcement made on November 14, 2024.

What is the new relationship between Lynk & Co and Zeekr Group (ZK)?

Following the transaction, Lynk & Co has become an indirect non-wholly-owned subsidiary of Zeekr Group.

How does the Geely transaction affect Zeekr's (ZK) market position?

The transaction strengthens Zeekr's position in the premium new energy vehicle sector through strategic integration with Geely entities and the addition of Lynk & Co to its portfolio.