Flash: Geely Auto and Zeekr Sign Merger Agreement

Zeekr merges back into Geely, taking the ‘One Geely’ strategy a step further

On July 15, Geely Holding Group announced that its subsidiary, Geely Automobile Holdings Limited (0175.HK), has officially signed a merger agreement with Zeekr Intelligent Technology Holding Limited (NYSE: ZK). According to the agreement, Geely Auto will acquire the remaining shares of Zeekr, and Zeekr shareholders will have the option to receive cash or exchange their shares for Geely Auto stock.

As early as last year, Geely proposed the concept of “One Geely” in the Taizhou Declaration, which centers on reorganizing its scattered resources and brands to reduce internal friction, enhance synergy, and adopt a more streamlined strategy to face the industry’s survival-of-the-fittest phase.

For Geely, Zeekr has been its flagship in the premium EV segment in recent years. However, operating independently also led to some duplicated investments in areas such as production capacity, supply chains, and sales networks.

Now that Zeekr is returning to the Geely Auto system, internal resources can be utilized more efficiently. More importantly, this move maximizes economies of scale—enabling shared access to technology, manufacturing capacity, supply chains, and even overseas markets—thereby naturally improving overall efficiency.

Geely Auto CEO Jerry Gan stated that the company will focus on the interests of investors and users, ensuring that the merged operations run efficiently and continue to generate long-term value for shareholders.

Geely Holding Chairman Eric Li also noted that the “One Geely Initiative” has been advancing smoothly for over a year, and this merger lays a stronger foundation for Geely Auto’s future development.

From an industry perspective, the current competition is all about efficiency and profitability. As the auto market becomes increasingly competitive, operating with “multiple brands” can help capture market share, but it also risks diluting resources and dragging down overall performance. Whoever can integrate their brands and resources earlier will burn less cash and generate more real profits.

Geely’s latest merger move also sends a clear signal to the outside world: it’s telling fewer stories and starting to prove its real capabilities.