Zhejiang Geely Holding Group is revealed to have agreed to undergo a binding deal on Sunday to acquire Sweden's Volvo Cars from Ford Motor Co., which is ambitious bid for the Chinese automaker, and also a challenge. The acquisition is actually a landmark deal for China's flourishing car industry that also poses serious challenges for Geely.

However, Geely earlier had revealed that it expected to extend a final decision on the deal by the end of March.

Chinese Vice President Xi Jinping is reportedly visiting Sweden, and a signing ceremony could be timed to coincide with his visit.

Xi was due to visit Goteborg, Sweden, where Volvo’s headquarters are located, on Sunday, the official Xinhua News Agency reported. However, no more specific information of Xi's schedule was revealed.

Volvo spokesman Per-Ake Froberg on Friday quoted that the acquisition deal could be concluded on Sunday, "but it's not set in stone yet." 

However, he preferred to remain silent on the price, but analysts have speculated that the deal at about $2 billion.

There is also no news about who would head the Volvo team at Geely.