STOCKHOLM: Swedish truck maker Volvo Group said yesterday it had completed the acquisition of 45 percent of a subsidiary to Chinese motor giant Dongfeng for $893m.
Announced in January 2013, and now confirmed by Beijing, the deal awards Volvo a share in Dongfeng Commercial Vehicles (DFCV) worth 5.5bn yuan.
The other 55 percent remains in the hands of the parent company, Dongfeng Motor Group, one of the main shareholders of the French carmaker PSA.
“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,”
Volvo wrote in a statement
yesterday.AFP
