Zhejiang Geely Holdings Group, the largest privately owned carmaker in China, expects to sign the agreement with Ford Motor Co on Feb. 8 to acquire Swedish auto maker Volvo, the Economic Observer reported.

The two sides are likely to sign the agreement at Volvo's plant in Sweden. Geely will pay not more than US$1.8 billion or even less than US$1.6 billion for the acquisition.

Reportedly, Geely will retain Volvo's brand and operations in Sweden after the deal, and a new factory will be set up in Beijing to produce Volvo cars, with an annual capacity of 300,000 units.

In December last year, Geely announced that it had inked a framework agreement with Ford for the acquisition of the Swedish unit.

The transaction will be completed in May, said the report.