Jones Day advises Geely Auto on Valencia JV
Jones Day is advising Geely Automobile Holdings Limited (Geely Auto, Stock Code: 0175.HK) on an agreement with a global OEM to establish a manufacturing joint venture in Valencia, Spain. The transaction, signed on July 23, 2026, is valued at approximately €221 million.
Centurion Industries Limited, a wholly-owned subsidiary of Geely Auto, entered into a share purchase agreement with the global OEM under which Geely Auto agreed to acquire a 34% equity interest in the OEM’s subsidiary for approximately €221 million. Upon completion, the target company will be owned 66% by the global OEM and 34% by Geely Auto. Closing remains subject to a number of conditions precedent, including obtaining relevant regulatory clearances and completing an internal reorganization of the target.
On the same date, the parties also signed a joint venture agreement governing the management and operation of the target, which will be dedicated to the contract manufacturing and supply of passenger vehicles for both the Geely Auto group and the global OEM at facilities in Almussafes, Valencia. The plant is expected to become a shared manufacturing hub for both companies once the joint venture is formed.
Strategic Rationale
Geely Auto is listed on the Main Board of The Stock Exchange of Hong Kong and is engaged in the research, development, manufacturing and sale of automobiles, automobile parts and related components. The acquisition and formation of the joint venture represent a further step in the collaboration between Geely and the global OEM. By sharing manufacturing resources and expertise, the parties expect to generate economies of scale and lower research, development and production costs, while jointly advancing the production of low- and zero-emission vehicles for the European market.
The team
The Jones Day team in Spain was led by partner Miguel Bermúdez de Castro and included Carolina Naranjo, Priscilla Rojas, Eduardo Ortega, Jorge Cantón, Raimundo Ortega, Cristina de Andrés, Barbara Fernández, Javier Gutiérrez, Vidal Galindo, Luis Jiménez-Díaz, Carlos Albiñana, Álvaro Suárez, Paloma Valor, Victoria Paredes, Eugenia Pemán, Marina Zarza, Laura Sánchez, Gonzalo Hierro, Jimena López-Navarro and Antonio Canales.
