18.06.2012

Volvo increases stake in Deutz

Swedish construction machinery manufacturer Volvo is to purchase 22 million shares in German engine manufacturer Deutz from the existing majority shareholder Same Deutz-Fahr - making it the largest shareholder.

Subject to the necessary approval of the anti-trust authorities, Volvo will hold 25 percent plus one share leaving Same Deutz-Fahr with about 8.4 percent.

"The acquisition of the shareholding underlines the fact that Volvo seeks to deepen its long-standing cooperation with Deutz and plans to further develop jointly with us the successful strategy of recent years," said Dr. Helmut Leube, chairman of the management board of Deutz AG. “We also look forward to continue the successful cooperation with our partner Same Deutz-Fahr.”

Same Deutz-Fahr also announced its intent to continue its successful customer supply relationship and strategic partnership with Deutz which dates back to July 2010 and involves expanding the market for agricultural machinery engines of under four litres.

In 2013, Deutz will start to supply its new TCD 2.9 L4 and TCD 3.6 L4 engines – which are designed for agricultural applications – to Same Deutz-Fahr which manufactures agricultural equipment and markets a range of telescopic handlers built for it by JLG Europe. The new agreement will see the number of engines supplied to the group grow to over 14,000 by 2014.