SHIYAN, Hubei – Dongfeng Motor Group Co., Ltd. (DFG) completed the transaction of 45 percent stake it had in its subsidiary, Dongfeng Commercial Vehicles Co., Ltd. (DFCV), to AB Volvo on January 5, according to a company press release.
The transaction amount was ¥5.5 billion ($887 million), said the press release.
DFCV includes most of DFG’s operations in heavy-duty and medium-duty commercial vehicles. To implement the transaction, a number of conditions had to be fulfilled, including approval from the Chinese competition authority and other relevant authorities. All approvals have been received. This transaction will significantly strengthen the two parties’ position in medium-duty and heavy-duty trucks while the DFG-Volvo alliance will become one of the world’s largest manufacturers of both medium-duty and heavy-duty trucks.