 New Delhi: The Same Deutz-Fahr group, a world leaders in the field of tractors, illustrated at simultaneous press conferences in Milan and Frankfurt, the content of the agreement recently signed in Germany with Deutsche Bank and Volvo, the two leading shareholders of Deutz AG, which will allow the Same Deutz-Fahr group to participate in the recapitalisation of Deutz AG, one of the world's top manufacturers of diesel engines, becoming the largest shareholder of Deutz AG. The Same Deutz-Fahr group will participate in the capital increase worth euro 68.7 million (Rs 350 crore) called for by the board of directors of Deutz AG. And, thanks to a waiver by Deutsche Bank and Volvo from exercising their respective rights of option, together with a call option for the remaining portion held by Deutsche Bank, the Same Deutz-Fahr group will become the largest shareholder (29.9 per cent equity) of Deutz AG. The investment of euro 86.7 million (Rs 442 crore) by the Same Deutz-Fahr group in this operation is linked to a long-term accord for industrial collaboration in diesel engines with Deutz AG. Volvo will remain among the shareholders of Deutz AG, with which it has had for several years a long-term industrial collaboration agreement in its specific sector, analogous to the one now agreed upon with Same Deutz-Fahr, the strategic alliance with Volvo and with Same Deutz-Fahr strengthens and accelerates the growth strategy of Deutz AG. It confirms it as one of the main European public companies and, at the same time, strengthens the industrial development of the Same Deutz-Fahr group allowing it to continue, in the tractor sector, to preside over the decisive function of planning and development of new engines compatible with European norms for emissions reduction, avoiding having to turn to the competition for the purchase of a strategic component. The Same Deutz-Fahr Group was assisted, as financial advisor, by ABN AMRO Corporate Finance. Same Deutz-Fahr was founded in Treviglio (Italy) in 1927 by the engineer Francesco Cassani and belongs to the Carozza family. With the brands Same, Lamborghini, Hurlimann and Deutz-Fahr, it is one of the leaders of agricultural tractors in the world. The company also designs, builds and sells diesel engines throughout the world. The Group's strategy, which has always been based on an international capillary distribution network and on efficient locations world-wide, produces its own range in four different plants: in Italy, Germany, Poland and now in India. The recent acquisition of Same Greaves in India and the investment in the US with the creation of a sales subsidiary are evidence of the development strategy in extra-European countries. Same Deutz-Fahr India is a 100-per cent owned subsidiary of the group.
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