Volvo Truck Buys Stake in Dongfeng Commercial Vehicles

AB Volvo has completed its purchase of 45% of China's Dongfeng Commercial Vehicles Co. Ltd. for 5.5 billion yuan (€750 million).

The companies announced the sale two years ago and have been gaining approvals from various Chinese authorities since then. The deal involves most of Dongfeng's medium- and heavy-duty commercial truck operations.

DFCV generated revenue of 26 billion yuan (€3.5 billion) on the sale of 116,000 trucks in the first three quarters of 2014. Volvo Truck says the stake will significantly raise its position in the medium-duty truck market.

Volvo will report DFCV as an associated company beginning this month.