Volvo increases Deutz shareholding
Amanda Bayhi | June 19, 2012
Volvo bought approximately $163 million shares from Same Deutz-Fahr Group (SDF), paying just over $7 per share. Once the transaction is complete, SDF will own 8.44 percent of shares in Deutz. Volvo will own more than 22 million shares.
This agreement comes on the heels of a non-binding memorandum of understanding Volvo and Deutz signed in April. The memorandum provides 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. It also aims at analyzing the conditions for establishing a joint venture in China for the production of medium-duty engines for off-road applications.
The transaction is scheduled to be finalized in the third quarter of this year. Volvo currently owns 8,097,754 shares in Deutz, corresponding to a 6.7 percent shareholding.
For more information, visit volvogroup.com.
MORE FROM Industry
- Report: Just 6 Percent of 2013 federal-aid funding went into new roads & bridges382 Views
- 2014 Better Roads Bridge Inventory341 Views
- One killed, four injured after bridge collapses at college327 Views
- Highway Trust Fund: Who’s in and who’s out in next Congress234 Views
- Tracked electric vehicles the future of transportation?192 Views