Geely's Chairman Li Shufu (L2) shakes hands with Ford's CFO Lewis Booth. China's Zhejiang Geely Holding Group on March 28 signs a deal with Ford Motor Co. on the takeover of Sweden's Volvo Cars.

China's Zhejiang Geely Holding Group signed a deal worth 1.8 billion U.S. dollars with Ford Motor Co. here Sunday to acquire the U.S. auto giant's Volvo car unit.

Under the definitive stock purchase deal, Geely will own 100 percent of Volvo Cars and its related assets.

The agreement was inked by Li Shufu, founder and chairman of Geely, and Lewis Booth, chief financial officer of Ford, at a ceremony at the headquarters of Volvo in Goteborg, the second largest city of Sweden.

The ceremony was witnessed by Li Yizhong, China's minister of industry and information technology, and Maud Olofsson, Swedish deputy prime minister and minister for enterprise and energy.