Volvo becomes major Deutz shareholder

Swedish commercial vehicle manufacturer AB 473 Volvo has increased its shareholding in Deutz from 6.7% to just over 25%.

Following an announcement in June 2012, Volvo has acquired 22,117,693 shares from long-standing majority shareholder Same 617 Deutz-Fahr for approximately €130 million. As a result of the transaction, Volvo now has a shareholding of 25% plus one share, making it the largest Deutz 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.

Earlier 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.