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STOCKHOLM (Reuters) -Sweden’s Volvo Car Group said on Wednesday it had struck a deal to buy out parent company Geely Holding from their joint ventures in China, aiming to take full ownership of its factories and sales business in the world’s biggest auto market.

Under the deal, whose financial details were not disclosed, Volvo will have full ownership of its manufacturing plants in Chengdu and Daqing, its national sales company in China and its R&D facility in Shanghai, the company said.

“With this agreement, Volvo Cars will become the first major non-Chinese automaker with full control over its Chinese operations,” Volvo Cars Chief Executive Hakan Samuelsson said in a statement.

Volvo said the transactions, which are subject to regulatory approval, would be carried out in two steps, starting in 2022 when the joint venture requirement for auto manufacturing in China will be lifted, and seen formally completed in 2023.

The Gothenburg-based carmaker, bought from Ford Motor Co by Geely in 2010, is exploring capital market options including a potential initial public offering (IPO) and stock market listing.

Reporting by Niklas PollardEditing by Anna Ringstrom and Mark Potter

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