AB Volvo acquires shares in Deutz AG
On June 13 AB Volvo announced that it had signed an agreement under which the company is offered the opportunity to increase its shareholding in Deutz AG from 6.7% to just over 25% by acquiring a total of 22,117,693 shares from Same Deutz-Fahr Group at a price of EUR 5.88 per share, EUR 130 M in total. 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, which since many years is a strategic partner within medium-duty engines for construction equipment.
AB Volvo divests Volvo Aero to British GKN for SEK 6.9 billion
On July 5 it was announced that AB Volvo divests the Group’s subsidiary Volvo Aero to the global engineering company GKN for an enterprise value of SEK 6.9 billion. The transaction is scheduled for completion during the third quarter of 2012. The transaction is expected to generate a positive effect on the Group’s operating income for the third quarter of about SEK 200 M. The divestment is expected to reduce the Group’s net debt by approximately SEK 5 billion. To close the transaction, approval is required from the appropriate authorities.
New Volvo engine for Euro VI
On July 5 Volvo Trucks presented an engine tailored for the Euro VI environmental standards. Nitrogen oxide emissions have dropped by 77% and particulate emissions have been halved from already low levels. First off the mark is Volvo’s D13 460 horsepower engine, which today powers more than one-third of all Volvo trucks.