HK Stock Market Move | GEELY AUTO (00175) rises more than 4%, planning to spend 221 million euros to acquire 34% stake in Ford's Spain factory, advancing its European localization strategy.

Geely Auto (00175) rose by more than 4%, reaching 3.83% by the time of publication, at HK$19.23, with a trading volume of HK$277 million. On the news front, Geely Auto announced that its wholly-owned subsidiary Geely SPV plans to acquire 34% stake in Ford Espaa, S.L. from Ford NL for 221 million euros on July 23, 2026. However, the final price is subject to adjustments based on the target company's net debt, working capital position, and asset range. On the same day, Geely SPV, Ford NL, and the target company entered into a joint venture agreement to regulate the management and operation of the target company. Once completed, the target company will operate as a joint venture between the group and Ford Group, engaging in contract manufacturing of passenger cars at its factory in Almussafes, Valencia, Spain. The announcement stated that the acquisition and establishment of the joint venture company will allow the group to directly enter a mature production platform in Europe, enabling local production of some Geely brand vehicles for the European market to support the group's localization strategy in Europe. Through the establishment of the joint venture company, the group expects to benefit from the existing production capacity, experienced workforce, and supply chain network at the Valencia factory, accelerating its market deployment in Europe and reducing the execution risks and capital requirements associated with building new production facilities independently.