Geely acquires over a third of stake in Renault Korea

Geely Automobile will acquire just over a third of Renault’s Korea unit for approximately $200 million, potentially helping it increase U.S. exports, and freeing up funds for the French automaker to spend on its electric business.

Renault has the ability to assemble 300,000 vehicles a year in its factory in Busan, South Korea.

Renault’s move to sell the stake to Geely – which owns Volvo Cars and a 9.7% stake in Daimler AG – comes after an announcement by the two companies in January for developing hybrid vehicles for South Korea and abroad, produced at the Busan plant.

Renault’s decision to sell 34.02% of Renault Korea for 264 billion won ($207 million) also appears weeks after media reports the automaker, the top shareholder in Nissan Motor (7201.T), may decrease its stake in the Japanese automaker.