AB Volvo becomes the major DEUTZ shareholder
Swedish commercial vehicle manufacturer AB Volvo has increased its shareholding in DEUTZ AG from 6.7 per cent to just over 25 per cent. Following an announcement in June 2012, AB Volvo has acquired 22,117,693 shares from long-standing majority shareholder SAME DEUTZ-FAHR for approximately €130 million.
As a result of the transaction, AB Volvo now has a shareholding of 25 per cent plus one share, making it the largest DEUTZ AG shareholder. Italian agricultural machinery manufacturer SAME DEUTZ-FAHR continues to hold approximately 8.4 percent and will maintain its successful relationship as both a customer and supplier as well as continuing its strategic partnership with DEUTZ.
In the spring of this year, DEUTZ and Volvo signed a memorandum of understanding with the aim of exploring the option of extending their long-term alliance by jointly developing a new generation of medium-duty engines for industrial applications. As part of the memorandum of understanding, the two companies are also analysing the terms and conditions for establishing a joint venture in China in which DEUTZ would hold a majority stake. The production company optimises DEUTZ’s Asia strategy and would support the Volvo Group's expected growth in Asia by manufacturing medium-duty engines for industrial applications.