China's Geely buys London Black Cab manufacturer

The acquisition covers the business and principal assets of MBH.

The deal, which will safeguard production of one of the most distinctive vehicles in the UK, has been agreed with Pricewaterhouse Coopers, who were appointed administrators of the business in October 2012, Zhejiang Geely Holding Group said in a release.

The acquisition was carried out through Geely UK Ltd, a subsidiary of the Zhejiang Geely Holding Group and included plant, equipment and property, intellectual property rights, trade marks and the goodwill of the business, state run Xinhua news agency reported.

It also includes MBH's 48 per cent stake in the joint venture manufacturing company in Shanghai set up by Geely and MBH in 2009 and MBH's stock of unsold vehicles.

Geely's priority will be to re-establish the manufacture, sale and servicing of new and current vehicles on broadly the same basis as existed before the business went into administration.

This will include the continued assembly of the TX4 at MBH's existing Coventry plant in the West Midlands, the statement added.

Geely has pledged to involve the current workforce as much as possible as it develops plans to ensure MBH has a long-term profitable future, enabling the business to expand and support employment opportunities.

"We are delighted to have completed the acquisition of MBH's business and we are determined to restore the fortunes of this totemic marque which is known, recognized and admired all around the world," said Li Shufu, Zhejiang Geely Holding Group chairman.

Boris Johnson, mayor of London said, "I am delighted that Geely has successfully secured the future of the London Taxi Company, ensuring the continuing manufacture of a world famous, fully accessible and instantly recognizable vehicle synonymous with London."