Geely tightens grip on London cab maker

Zhejiang Geely Holding Group Co., the Chinese carmaker seeking to buy Ford Motor Co.’s Volvo Cars, may take control of Manganese Bronze Holdings Plc, maker of the iconic London black cab, the U.K.-based company said. Geely’s Hong Kong-listed unit may raise its stake in the company to 51% from 19.9% by buying new shares at 70 pence (US$1.05) a piece, Mark Fryer, Manganese’s finance director, said. The Coventry, England-based automaker, which would raise about 14 million pounds (US$21.5 million) from the share sale, will spearhead Geely’s plans to sell its own saloon cars in Europe, he said. “It is a reasonable move, but whether Geely can gain from the deal will depend on the sales volume,” said Ricon Xia, an analyst at Daiwa Institute of Research in Hong Kong. (March 19, 2010)