AB Volvo (OM:VOLV B) entered into cooperation master agreement to acquire 45% stake in Dongfeng Commercial Vehicles Co., Ltd from Dongfeng Motor Group Company Limited (SEHK:489) for CNY 5.6 billion on January 26, 2013. The initial consideration is payable by Volvo in cash on 15 business day following satisfaction or waiver of the conditions precedent set out in agreement. The final consideration shall be adjusted according to relevant terms prior to the submission to the Ministry of Commerce of the Government of China (MOFCOM) so as to remain in line with the net purchase price. In a related transaction, Dongfeng Commercial Vehicles Co., Ltd entered into framework agreement to acquire assets of Dongfeng Motor Co., Ltd. from Dongfeng Motor Corporation, Ltd, Nissan Motor Co. Ltd. (TSE:7201) and Nissan China Investment Co., Ltd. for CNY 7.5 billion, Dongfeng Motor Group Company Limited (SEHK:489) entered into framework agreement to acquire Dongfeng Motor Finance Co., Ltd. and Dongfeng Liuzhou Motor Co., Ltd. from Dongfeng Motor Co., Ltd. for CNY 2.5 billion, Dongfeng Commercial Vehicles Co., Ltd entered into framework agreement to acquire Dongfeng Dana Axle Co.,Ltd., Dongfeng Suizhou Special Vehicle Co., Ltd., Dongfeng Special Vehicle Chassis (Hubei) Co., Ltd., Dongfeng Special Vehicle Co., Ltd., Dongfeng Xinjiang Automobile Co., Ltd., Dongfeng Forging Co., Ltd., Shenzhen Dongfeng Automobile Co., Ltd. and Dongfeng Motor Transmission Co., Ltd from Dongfeng Motor Co., Ltd. for CNY 1.7 billion, China Dongfeng Motor Industry Import and Export Co., Ltd. entered into framework agreement to acquire Dongfeng Motor RUS Co., Ltd and Hubei Dongfeng Motor Industry Imports & Exports Co., Ltd. from Dongfeng Motor Co., Ltd. for CNY 25.1 million. The offer will expire on August 25, 2014.

The Board of Directors of Dongfeng Commercial will consist of seven directors, four of whom to be appointed by Dongfeng Motor Group and the other three to be appointed by Volvo. The deal is subject to approval of relevant anti-trust agencies and Chinese authorities, permits and consents for the transfer of 45%, received all necessary licenses and state-owned land use rights certificates, each party having signed the equity transfer agreement, Dongfeng Commercial Vehicles having acquired all the assets disposed by Dongfeng Motor Co., Ltd., completing all necessary actions in compliance with all applicable laws of the People's Republic of China and tax regulations, including obtaining relevant approvals, consents and confirmations from government or regulatory authorities for completion of the formation of the joint venture. If any of the conditions set out in agreement, including those mentioned above, is not satisfied or waived in accordance with the terms thereof by July 15, 2015, each party may terminate agreement. The proceeds from deal will be used as the working capital of Dongfeng Motor Group Company Limited. The deal is expected to complete within approximately 12 months. Payment of the purchase price will increase Volvo's net debt by approximately SEK 6 billion (CNY 5.8 billion). As of May 9, 2013, the transaction is approved by the European Commission. As on January 22, 2014, the transaction has been approved by Chinese government. Completion of the transaction is currently expected to take place during mid-2014. The financial conversion was made from www.oanda.com on January 26, 2013.