GÖTEBORG, Sweden--()--Regulatory News:
AB Volvo (STO:VOLVA)(STO:VOLVB) has completed the previously announced transaction whereby the company increases its shareholding in Deutz AG from 6.7% to just over 25%. In total, AB Volvo has acquired 22,117,693 shares from Same Deutz-Fahr Group for an amount of EUR 130 million. The transaction makes AB Volvo the largest shareholder in Deutz AG.
Deutz AG has been a strategic supplier of medium duty engines to the Volvo Group for more than a decade. Earlier this year, AB Volvo and Deutz AG signed a non-binding memorandum of understanding with the intention to explore the potential to extend the companies’ long-term cooperation through joint development of the next generation of medium-duty engines for off-road applications. The memorandum of understanding also aims at analysing the conditions for establishing a joint venture in China for the production of medium-duty engines for off-road applications.
The transaction is not expected to have any material impact on the Volvo Group’s earnings or financial position.
September 13, 2012
The Volvo Group is one of the world’s leading manufacturers of trucks, buses and construction equipment, drive systems for marine and industrial applications and aerospace components. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 115,000 people, has production facilities in 20 countries and sells their products in more than 190 markets. In 2011 annual sales of the Volvo Group amounted to about SEK 310 billion. The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm. For more information, please visit www.volvogroup.com or www.volvogroup.mobi if you are using your mobile phone
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