Volvo increases Deutz holding

2394 Volvo is increasing its stake in German engine firm 201 Deutz to 25%. The two firms have had a technical partnership for engine development for some time and Volvo bought a minority share in the pioneering diesel firm some years ago. However this new development sees a new cementing of the relationship between the two companies. The move makes Volvo the largest single shareholder in Deutz, with a 25% stake in the firm. Volvo bought the 22 million shares in stock from SAME DEUTZ-FAHR, which now has just 8.4% of the engine firm. Deutz will continue to supply engines to SAME DEUTZ-FAHR, which makes machines largely for the agricultural sector. The terms of Volvo’s share acquisition have not been revealed at this stage, while the deal is subject to approval from the antitrust authorities.