China's Geely to take over debt-laden automaker Lifan

FILE PHOTO: A building of the Geely Auto Research Institute is seen in Ningbo FILE PHOTO: A building of the Geely Auto Research Institute is seen in Ningbo, Zhejiang province, China August 4,2017. REUTERS/Aly Song/File Photo

HONG KONG/BEIJING: Volvo owner Geely is set to take over an automaker battered by a prolonged sales decline exacerbated by the impact of the novel coronavirus, said three people with knowledge of the matter, in an indication of how the pandemic is stoking consolidation.

Zhejiang Geely Holding Group Co Ltd plans to become the top shareholder of Chongqing Lifan Holdings Ltd and inject fresh capital into China's one-time leading motorcycle maker, said two of the people, who declined to be identified as the matter was private.