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The Swedish automaker Volvo has confirmed its intention to suspend an initial public offering with a potential value of $ 30 billion, after accusing the trade war of President Donald Trump of postponing the sale of shares .
"There is no plan or timetable to enter the stock market," Hakan Samuelsson, Volvo CEO, told the Los Angeles auto show Wednesday, according to the agency's agency. Reuters press. He added that the Swedish company also did not seek to raise funds with bonds.
Samuelsson's confirmation comes about three months after the effective date of its IPO. Geely, the Chinese automaker giant, owner of Volvo, has postponed this deadline.
The carryover, which had suspended the IPO projects that valued Volvo at $ 30 billion, took place while the automaker was worried about US President Donald Trump's trade war that could hurt its evaluation.
"The current conditions are not optimal to give certain benefits to investors," Samuelsson said at the time.
Read more: Job loss, sluggish growth and rotting crops: this is how Trump's trade war hurts America
In September, Geely announced that it had obtained the support of its investors, but feared that Volvo shares would slip after their IPO, angering Swedish pension funds. The IPO would have been the largest in Sweden since the Telia telecommunications company listed on the stock market in 2001.
Trump's trade war, however, seems to have derailed the list, with the threat of auto tariffs weighing heavily on the auto manufacturing sector. Trump has threatened to impose a 25% tariff on all vehicles and auto parts entering the United States to extract concessions from trading partners, including the European Union and Canada.
It has not yet responded to such threats, but earlier this month it was reported that the White House was issuing a report on the auto tariff perspective.
The trade war is at a crucial turning point. Trump and Chinese President Xi Jinping are expected to meet at this weekend's G20 summit in Buenos Aires, Argentina. Observers hope the two countries will reach a trade deal that would prevent the United States from lifting existing tariffs from 10% to 25%.
Geely, which also owns the British sports car manufacturer Lotus and the company that makes black London taxis, sold more than 1.2 million cars in 2017.
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