China’s Geely is officially bringing its luxury EV startup Zeekr private

Geely Auto, a prominent player in China's automotive sector, has made the significant decision to take its luxury electric vehicle (EV) brand, Zeekr, private. This strategic move comes just over a year after Zeekr made its debut on the New York Stock Exchange. The announcement follows Geely's proposal to transition Zeekr to private ownership, a decision influenced by recent geopolitical tensions, particularly following former President Donald Trump's warnings regarding potential delisting of Chinese companies from U.S. stock exchanges. As part of the merger agreement, shareholders of Zeekr will have the option to receive either $2.69 in cash for each share or 1.23 newly issued shares of Geely for every Zeekr share they possess, according to a recent regulatory filing. For holders of Zeekr's American depositary shares (ADS), which are equivalent to ten Zeekr shares, the compensation will be either $26.87 in cash or 12.3 Geely shares, issued as Geely ADSs. This revised offer is slightly more favorable than the initial proposal made by Geely in May. While investors are generally offered a choice between cash or stock, specific retail investors in Hong Kong will automatically receive cash. The board of Zeekr has already given its approval for the merger, which is slated to finalize in the fourth quarter of 2025. However, the implications of Zeekr's transition to private status on its ongoing partnership with Waymo remain uncertain. This partnership involves the development of customized robotaxis for extensive deployment in the United States. Waymo is anticipated to commence the rollout of Zeekr vehicles in the San Francisco Bay Area this year, with some units already spotted undergoing testing in the city. TechCrunch has reached out to Waymo for further details regarding this partnership and the potential impact of Zeekr's privatization.