Volvo On 18-Month-High After China Stake Buy

Via The Swedish Wire:

Volvo Trucks rallied on the Stockholm exchange Monday after announcing a major Chinese take buy that could help the Swedish company become the world’s biggest maker of heavy-duty trucks.

The Gothenburg-based maker of Mack and Volvo trucks said it would acquire a 45% stake in a new venture with China’s Dongfeng Motor Group Co for 5.6 billion yuan ($900 million).

The alliance will “help the Volvo group to enter the Chinese market, which is the world’s largest market for trucks, with a total market for heavy trucks equivalent to the European and North American markets combined”, Chief Executive Olof Persson said at a Saturday news conference, according to business media.

Volvo AB rose to an 18-month high Monday, up 3.4 percent to 100.5 kronor, in midday trading.

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