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