On November 2, the Volvo Group and Daimler Truck AG (Daimler Truck AG) have signed a binding agreement. According to the agreement, the two parties will establish a joint venture to develop, produce, and commercialize fuel cell systems for heavy-duty trucks.
Volvo Group said that it will subscribe for a 50% stake in the joint venture Daimler Truck Fuel Cell Co., Ltd. in a cashless and debt-free manner, with a total value of approximately 600 million euros.
The transaction is still subject to merger control review and other approvals by relevant departments, and is expected to be completed in the first half of 2021.
Volvo Group and Daimler Trucks will have equal rights in the joint venture, but they will remain competitors in all other areas such as automotive technology and truck fuel cell integration.
Previously, in April this year, Volvo Group and Daimler Trucks announced that the two parties had signed a preliminary non-binding agreement to jointly establish a new joint venture company, each holding 50% of the shares.
In order to establish this joint venture, Daimler Trucks has integrated all fuel cell businesses within the group into a new Daimler Truck Fuel Cell business unit.