Swedish commercial vehicle manufacturer AB Volvo increased its shareholding in Deutz AG from 6.7% to just over 25%. After 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 euros.
As a result of the transaction, AB Volvo now has a shareholding of 25% plus one share, making it the largest Deutz AG shareholder. Italian agricultural machinery manufacturer Same Deutz-Fahr continues to hold approximately 8.4% and will maintain its relationship as both a customer and supplier as well as continuing its strategic partnership with Deutz.
In spring 2012, Deutz and Volvo signed a memorandum of understanding aimed at exploring the option of extending their long-term alliance by jointly developing a new generation of medium-duty engines for industrial uses. As part of the memorandum of understanding, the companies are also analyzing terms and conditions for establishing a joint venture in China in which Deutz would hold a majority stake. The production company optimizes Deutz’s Asia strategy and would support the Volvo Group’s growth in Asia by manufacturing medium-duty engines for industrial applications.