Volvo to Take Control of China Operations From Parent Geely (1)

Volvo Cars has agreed to take control of its China ventures from parent Geely Automobile Holdings Ltd., potentially boosting its valuation ahead of a planned share sale.

The deal will make Volvo the first major foreign automaker to gain full control over its Chinese operations, the Swedish company’s Chief Executive Officer Hakan Samuelsson said in a statement Wednesday. The companies declined to comment on terms of the deal.

Next year, China is set to remove the 50% cap on foreign automakers’ investments in joint ventures that make gasoline-powered cars, after lifting the limit for electric-vehicle manufacturers in 2018. Tesla Inc. ...