China's Geely Auto and Swedish brand Volvo Cars are considering combining their businesses into a strong global company, with listings in Hong Kong and Stockholm, the two companies said late Monday.

Zhejiang Geely Holding group, parent company of Geely Auto, acquired Volvo from Ford in 2010.

Geely Auto and Volvo said they will create a joint working group to prepare a proposal to their respective boards, but did not give a schedule. But they said the brands of the two companies, including Volvo, Geely, Lynk & Co and Polestar, will keep their identities after the combination.

The proposed combination would accelerate financial and technological synergies between the two companies, said Li Shufu, chairman of the holding group.

He said when combined, they will have the scale, knowledge and resources to be a leader in the ongoing transformation of the automotive industry.

Geely Auto sold 1.3 million vehicles in 2019 as the best-selling Chinese brand. Volvo delivered 705,452 cars in 2019, an increase of 9.8 percent year-on-year, with China its largest market globally.