Volvo gets first nod for Chinese JV

STOCKHOLM Wed Jan 22, 2014 7:49am EST

The logo of Volvo is pictured during a media preview day at the Frankfurt Motor Show (IAA) September 10, 2013. REUTERS/Pawel Kopczynski

The logo of Volvo is pictured during a media preview day at the Frankfurt Motor Show (IAA) September 10, 2013.

Credit: Reuters/Pawel Kopczynski

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STOCKHOLM (Reuters) - Volvo (VOLVb.ST) said on Wednesday a Chinese agency had approved a joint venture between the world's number two truck maker and China's Dongfeng Motor Group (0489.HK), but that more approvals were still needed.

Under the agreement with Dongfeng Motor Group Company Limited (DFG) Volvo will buy 45 percent of a new subsidiary of DFG which will include the major part of DFG's medium- and heavy-duty commercial vehicles business.

Volvo said China's National Development and Reform Commission, a macro-economic administrative agency, had approved the deal, but that more authorities also had to approve it.

"Completion is subject to certain conditions including the approvals of other Chinese authorities, which have not yet been obtained," Volvo said in a statement, adding it expected the deal to be completed mid 2014.

(Reporting by Sven Nordenstam; editing by Niklas Pollard)

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