Geely has snapped up a major stake in AB Volvo, adding the Swedish truck and plant equipment manufacturer to a portfolio that already includes the Volvo cars business.

Li Shufu’s Geely Holding will buy an 8.2pc stake of AB Volvo's capital from activist investor Cevian Capital, making the Chinese group AB Volvo's second-largest shareholder.

As part of the deal, Geely will take control of 88.47m A-shares and 78.77m B-shares, giving it control of 15.6pc of the votes. The value of the sale was not disclosed, but AB Volvo has a market value of about SEK 330bn (£30bn). It is thought that Geely paid about £2.5bn for the stake.