Sweden's AB Volvo said Monday it will spend about 500 million Swedish kronor (US$69 million) to raise its stake in Japan truck maker Nissan Diesel Motor Co. to 19 per cent.
Volvo had bought a 13 per cent stake in Nissan Diesel in March from Tokyo-based Nissan Motor Co., and Monday's purchase from Nissan Motor adds six per cent at about 439 yen ($3.77) per share.
The Swedish truck maker said the deal will help balance the company's offerings of heavy trucks and give it broader geographical reach in Asia.
Nissan CEO Carlos Ghosn said in a statement the sale was part of the Nissan's strategy to focus on its passenger and light commercial vehicle businesses.
``We firmly believe that Volvo is the best partner for Nissan Diesel,'' Ghosn said. ``During the past four years, Nissan Diesel has seen a turnaround in its business performance to become a valuable company.''
AB Volvo, the world's second-largest truck maker after DaimlerChrysler AG, has reportedly been outlining ambitious plans for a series of acquisitions to broaden its product range.
Volvo's purchase of a 13 per cent stake in the truck maker in March from Nissan, Japan's second-largest automaker, made Volvo the top shareholder in Nissan Diesel.
The agreement announced Monday dissolves Nissan's capital relationship with Nissan Diesel, Nissan Motor said.
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