China’s Geely Auto is moving to take its luxury electric vehicle subsidiary, Zeekr, private just over a year after the company went public on the New York Stock Exchange.
This development follows Geely’s proposal two months ago to take Zeekr private, amid increasing regulatory pressure and President Donald Trump’s earlier threats to delist Chinese firms from U.S. stock exchanges.
Deal Terms and Shareholder Options
Upon closing, Zeekr shareholders will receive either $2.69 in cash per share or 1.23 newly issued Geely shares for each Zeekr share owned, according to a regulatory filing. For holders of Zeekr American depositary shares (ADSs), which represent 10 Zeekr shares each, the options are $26.87 in cash or 12.3 Geely shares delivered as Geely ADSs. This offer is slightly improved from Geely’s initial proposal in May.
While most investors can choose between cash or stock, certain Hong Kong retail investors will receive cash by default.
Zeekr’s board has already given the green light to the merger, which is expected to finalize in the fourth quarter of 2025.
How going private will affect Zeekr’s partnership with Waymo remains unclear. The companies are collaborating to develop purpose-built robotaxis for large-scale deployment in the U.S., with Waymo’s Zeekr vehicles expected to hit the roads in the San Francisco Bay Area later this year. Some of these vehicles have already been spotted testing on San Francisco streets.
Author’s Opinion
Zeekr’s move to go private seems aimed at sidestepping regulatory and market pressures associated with U.S. public markets. This could give the company greater freedom to focus on long-term innovation, like its robotaxi partnership with Waymo, without the short-term scrutiny from public investors. However, it also raises questions about transparency and how it will maintain investor confidence outside the public eye.
Featured image credit: Rutger van der Maar via Flickr
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