Volvo Finalizes Acquisition Of Deutz Shares

Volvo Finalizes Acquisition Of Deutz Shares

September 13, 2012

AB Volvo announced that it has completed the previously announced transaction through which it is increasing its share of Deutz AG from 6.7% to just over 25%. In total, AB Volvo has acquired 22,117,693 shares from Same Deutz-Fahr Group for approximately 130 million (US$168 million). The transaction makes AB Volvo the largest shareholder in Deutz AG.

Deutz AG has been a strategic supplier of medium-duty engines to the Volvo Group for more than a decade. Earlier this year, the companies signed a non-binding memorandum of understanding with the intention to explore the potential to extend their long-term cooperation through joint development of the next generation of medium-duty engines for off-road applications. The memorandum of understanding also aimed at analyzing the conditions for establishing a joint venture in China for the production of medium-duty engines for off-road applications.

The recent share acquisition is not expected to have any material impact on the Volvo Group’s earnings or financial position.

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