In the agricultural mechanisation sector the diesel engine is a key component that can either be manufactured in-house or procured externally.
The SAME DEUTZ-FAHR Group opted for a unique external solution by means of a long-term strategic investment in DEUTZ AG, the international independent manufacturer of industrial diesel engines. Thanks to its size and know-how, DEUTZ AG can guarantee not just impeccable quality levels, but also the necessary performance, competitive costs, and technical development.
This operation was performed in a series of successive steps. Between 2003 and 2004 SAME DEUTZ-FAHR acquired a stake of 29.9% in the capital of DEUTZ AG. In 2006 the company decided to confirm its strategic investment in DEUTZ AG, converting the bonds and shareholding certificates already in its possession and launching a takeover bid. SAME DEUTZ-FAHR holds 8.44% of the Cologne manufacturer's capital stock: it is therefore the reference shareholder to all effects and purposes.
This operation enabled both companies to improve their competitive position in their respective world market sectors thanks also to the strengthening of their industrial collaboration. In terms of company performance, the significant growth of DEUTZ AG from 2003 to the present is proof of the strength and potential of the German engine maker and also the validity of this strategic project of SAME DEUTZ-FAHR.