NEW DELHI (dpa-AFX) - Volvo Financial Services, or VFS, the captive finance arm of Volvo AB (VLVLY, VOLV_A.ST, VOLVb.ST), and Eicher Motors Limited (EICHERMOT, 505200), an Indian automotive company, on Thursday announced their plan to form a 50-50 joint venture to provide financing, leasing, and other financial services to the customers of Volvo and Eicher-branded commercial vehicles in India.
The joint venture will be created by VFS India issuing new shares to Eicher in exchange for an equity investment of around SEK 730 million. The transaction is anticipated to be closed in the first half of 2027.
Marcio Pedroso, President of VFS, said: 'We believe now is the time to sharpen our focus on the Eicher brand as well, with our intended partnership serving as a springboard for bringing innovative financial services and solutions to both current and new customers and dealers, positioning us well to create long-term value in the growing Indian market.'
VFS and Eicher plan to operate the proposed joint venture as an independent entity and will incorporate existing people and resources from both companies into the new entity.
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