DONGFENG Motor Group has put up for sale on the Shanghai United Assets and Equity Exchange a 45 percent stake in its commercial vehicle company for 5.51 billion CNY (891.5 million USD), with the offer price to stand until August 25.
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The deal is expected to finalize the company’s joint venture plans with Volvo.
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Under a strategic partnership formed last year, Dongfeng and Volvo agreed to operate Dongfeng Commercial Vehicles on a 55-45 ownership basis. The new venture, which received regulatory approval earlier this year, will produce Dongfeng-branded medium- and heavy-duty trucks, chassis, engines and gearboxes. It will be based in Dongfeng’s hometown of Shiyan, Hubei Province.
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On completion of the deal, which in earlier reports was valued at 5.6 billion CNY, Volvo will become the world’s largest manufacturer of heavy-duty trucks.Â
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DONGFENG Motor Group has put up for sale on the Shanghai United Assets and Equity Exchange a 45 percent stake in its commercial vehicle company for 5.51 billion CNY (891.5 million USD), with the offer price to stand until August 25.
