Volvo has completed
the acquisition of 45 per cnet of Chinese truck manufacturer Dongfeng
Commercial Vehicles (DFCV) in a deal worth 5.5 billion yuan (approximately £600
million).
First announced in January 2013, the
agreement has now been approved by the Chinese authorities. The remaining 55
per cent of DFCV remains with parent company Dongfeng Motor Group.
DFCV manufactures medium- and heavy-duty
trucks and controlled 15% and 18% of these markets respectively in China for
2013.
"This strategic alliance is a real
milestone and entails a fundamental change in the Volvo Group's opportunities
in the Chinese truck market, which is the largest in the world," says Olof
Persson, Volvo's president and chief executive officer.
Volvo says the agreement will be recognised
with the formation of an associated company
It is interesting that on the same day Volvo
has made this announcement, another Swedish company, SinterCast, has also been
able to make an announcement in connection with Dongfeng – see news story
below. Volvo is now fully linked to Dongfeng and to compacted graphite iron
(CGI) material for diesel engine cylinder blocks and heads.
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