AB Volvo finalizes acquisition of shares in Deutz AG to increase 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 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.