By Gustav Sandstrom
STOCKHOLM--Swedish truck maker Volvo AB (VOLV-B.SK) Wednesday
said the National Development and Reform Commission in China on
Jan. 7 approved the establishment of a previously announced joint
venture between the company and China's Dongfeng Motor Group
Company Ltd. (0489.HK).
Additional authority approvals are to be obtained before
completion of the deal, which is currently expected to take place
in mid-2014, Volvo said.
Volvo in January last year announced an agreement with Dongfeng
to acquire 45% of the Chinese vehicle maker's new subsidiary
Dongfeng Commercial Vehicles, which will include a large part of
its medium and heavy duty commercial vehicles business.
"At completion of the transaction, the Volvo Group will
significantly strengthen its position in the medium-duty and
heavy-duty truck segment," the company said Wednesday.
At 1238 GMT, Volvo shares were up 0.3% at SEK90.60, in line with
the wider Stockholm market.
Write to Gustav Sandstrom at gustav.sandstrom@wsj.com; Twitter:
@WSJNordics