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AEDNews - Construction Equipment Industry NewsAB Volvo Acquires Shares in Deutz AGAB Volvo has signed an agreement under which the company is offered the opportunity to increase its shareholding in Deutz AG from 6.7 percent to just over 25 percent by acquiring a total of 22,117,693 shares from Same Deutz-Fahr Group at a price of EUR 5.88 per share. Completion of the transaction is subject to the fulfillment of a number of conditions, including the approval of the relevant competition authorities. The transaction would make AB Volvo the largest shareholder in Deutz AG. "Deutz AG has been an important supplier and partner for many years," said Olof Persson, Volvo’s CEO. "The increase in our shareholding in the company is a natural step in light of our plans to expand our commercial cooperation in medium-duty engines." 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 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 and is not expected to have any material impact on the Volvo Group’s earnings or financial position. At the date of negotiation, the price was set at EUR 5.88 per share, corresponding to the average price for the share for the three months preceding the date at which the price for the shares were agreed, plus a premium of 12 percent. AB Volvo currently owns 8,097,754 shares in Deutz AG, corresponding to a 6.7 percent shareholding. For more stories from the Volvo Group, please visit http://www.volvogroup.com/globalnews. 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. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 115,000 people, has production facilities in 20 countries and sells their products in more than 190 markets. In 2011 annual sales of the Volvo Group amounted to about SEK 310 billion. The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden. Volvo shares are listed on OMX Nordic Exchange Stockholm. For more information, please visit www.volvogroup.com or www.volvogroup.mobi if you are using your mobile phone. Article Date: 2012-06-18 Source: AB Volvo Copyright(C) 2012 Associated Equipment Distributors. All Rights Reserved. | ||||||
