On July 15, Geely Holding Group announced that its high-end electric vehicle brand, Zeekr, has officially been "incorporated" into Geely.

As a result, Zeekr will cease to be an independently listed company and will become a wholly-owned subsidiary of Geely.

Shareholder Options: Cash or Stock Swap?

Shareholders of Zeekr have two options following this merger: receive cash or exchange their shares for Geely shares.

• One share of Zeekr stock can be exchanged for $2.687 in cash or 1.23 new Geely shares.
• American Depositary Shares (ADS) can be exchanged for $26.87 in cash or 12.3 Geely shares.

For example, shareholders holding 100 shares of Zeekr stock can opt for $268.7 in cash or 123 Geely shares.

Geely has also generously offered a 2.4% premium, which is a favorable deal for shareholders.

If all shareholders opt for cash, Geely will need to pay approximately $2.4 billion (roughly RMB 17.2 billion). Alternatively, if all shareholders choose the stock swap, Geely will issue 1.098 billion new shares.

Behind the Merger: Li Shufu's "Brand Reorganization Strategy"

This merger is not a spur-of-the-moment decision but a strategic move in line with Geely CEO Li Shufu's vision of "Returning to One Geely".

Last September, Li Shufu pledged to end the internal competition among the company's various brands.

Previously, Zeekr and Lynk & Co. operated somewhat independently, each with their own intelligent driving teams and competing for battery capacity, creating an internal rivalry.

This merger represents Li Shufu's "third combination punch": first, allowing Zeekr to acquire a 51% stake in Lynk & Co., then establishing the Zeekr Technology Group, and now fully integrating Zeekr into Geely.

The division of labor is now clear: Zeekr will focus on the high-end market, while Geely Galaxy and China Star will cater to the mass market.

Efficiency Upgrade and Accelerated Growth of New Energy Vehicles Post-Merger

The most immediate change is that Zeekr will be delisted from the New York Stock Exchange, with all "homecoming procedures" anticipated to be completed by the fourth quarter of this year.

Going forward, Geely's resources will be more focused. Funds previously allocated to redundant research and development can now be directed towards creating more advanced technologies. Furthermore, the supply chain will no longer experience conflicts, and scarce resources like batteries and chips can be allocated more efficiently.

From a market performance perspective, this integration is already yielding positive results. In the first half of this year, Geely sold 1.93 million vehicles, marking a 30% year-on-year increase. Of these, 1 million were new energy vehicles, representing a growth rate of 73%. New energy vehicles now account for more than half of Geely's total sales, outpacing the industry average.