Germany‘s Bosch to increase stake in Sweden’s Husqvarna to 12%

Germany's Bosch to increase stake in Sweden's Husqvarna to 12%

BERLIN (Reuters) -Bosch said on Friday it had agreed to increase its shareholding in Husqvarna to roughly 12%, making it the Swedish company‘s biggest shareholder, as the German auto supplier seeks to strengthen the companies’ battery alliance.

Shares in Husqvarna, a garden equipment company, were up 12.6% by 0839 GMT following the announcement of the deal.

“We are pursuing a systematic growth strategy with our business activities for consumers. This also includes strengthening existing partnerships through equity interests,” Christian Fischer, deputy chairman of Boschs management board, said in a statement.

Husqvarna was not immediately available when contacted by Reuters for comment.

The garden equipment company makes outdoor power products, consumer watering products, cutting equipment and diamond tools for construction and stone industries.

Boschs power tools division set up a “Power for All Alliance” together with Husqvarna subsidiary Gardena in 2020. The 10-brand alliance features products relating to all home-based activities for the European market, Bosch said.

The German company has so far bought less than 5% of Husqvarna shares and has an agreement for around 7% more, a Bosch spokesperson said. This is subject to regulatory approval in Brazil, where cartel authorities have a low threshold for stakes to be authorized.

“There are currently no plans for a full takeover”, the spokesperson added.

(Reporting by Niklas Pollard, Agata Rybska and Ilona Wissenbach; Writing by Rachel More; Editing by Miranda Murray)

Crude Oil Price Forecast – Crude Oil Markets Continue to Be Very ChoppyNational Gas Accelerates to the DownsideSilver Price Forecast – Silver Shows Extreme VolatilityGBP to USD Forecasts: A Return to $1.25 in the Hands of US InflationBTC Fear & Greed Index Enters the Greed Zone on Bullish BTC SentimentGold, Silver, Platinum – Gold Pulls Back As U.S. Dollar Rebounds From Multi-Month LowsLoadingLoadingLoading