Volvo Cars and Geely Automobile is considering a merger in a bid to accelerate their financial and technological synergies.

In a joint-statement,Volvo Cars and Geely Automobile said that the considered combination would enable them to have the “scale, knowledge, and resources to be a leader in the ongoing transformation of the automotive industry.” Despite this, the combination would preserve the distinct identity of each of the brands: Volvo, Geely, Lynk & Co, and Polestar.

The merger would also allow the new company to have access to the global capital market through Hong Kong, with the intention to list in Stockholm, Sweden as well.

“A combination of the two companies would result in a strong global group. We look forward to working with Håkan Samuelsson, president and CEO of Volvo Cars, to further investigate this opportunity with the goal to strengthen the synergies within the Group while maintaining the competitive advantage and the integrity of each individual brand,” said Li Shufu, Chairman of Geely Holding Group.

As the two automakers seek the necessary approval of their respective boards, shareholders, and also compliance with regulatory approvals, both Volvo Cars and Geely will create a joint working group to prepare a proposal to their respective boards.

The move is in tune with Chairman Li’s strategy of consolidating and pooling resources in order to spearhead initiatives such as electrification and autonomous driving. Previously, Volvo announced that it formed a joint-venture with Geely for the development of international combustion engines. Li is also the largest shareholder of Daimler AG, the parent company of Mercedes-Benz.

The move is said to create China’s first true global automaker.