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STOCKHOLM, Feb 26 (Reuters) - Truckmaker AB Volvo is dropping the head of Geely-owned Volvo Cars from its board because of competition concerns after the Chinese group took an almost 10 percent stake in rival Daimler .
Volvo Cars is a subsidiary of Zheijang Geely Holding Group Co whose main owner is Li Shufu. It was announced on Friday that Li, Geely's founder, had built up an almost 10 percent stake in Daimler.
Volvo Cars Chief Executive Hakan Samuelsson has been a board member of AB Volvo since 2016. He was the CEO of German truckmaker MAN until 2009, and became CEO of Volvo Cars in 2012, two years after Geely bought the company.
"The reason that Hakan Samuelsson is not proposed for re-election is the announcement that Geely Group has become the largest shareholder of the German vehicle manufacturer Daimler, one of the Volvo Group's major competitors," the AB Volvo election committee said in a statement.
However, it will not be so simple to sever ties with Geely.
The Chinese company struck a deal in December to buy activist investor Cevian Capital's stake in AB Volvo, comprising 8.2 percent of shares and 15.6 percent of voting rights in the truck maker. (Reporting by Johannes Hellstrom; Editing by Keith Weir)